Marine Link
Saturday, May 26, 2018

NNPC Ends Offshore Processing Agreements

Maritime Activity Reports, Inc.

August 26, 2015

Nigeria's state oil company has cancelled its contract for the delivery of crude to the country's refineries in Warri, Port Harcourt and Kaduna, it said on Wednesday.
 
Oil sales account for about 70 percent of government revenue in Nigeria, Africa's top crude producer, but the country imports most of the fuel used by its 170 million inhabitants because of its inefficient, ageing refineries.
 
"The corporation has cancelled the current contract due to exorbitant cost and inappropriate process of engagement," a Nigerian National Petroleum Corp (NNPC) statement said, adding that the aim is to cut costs and improve efficiency.
 
Overhauling the energy sector in Africa's biggest economy has been a priority of President Muhammadu Buhari, who was inaugurated on May 29 after being elected largely on his pledge to fight corruption.
 
NNPC also announced the termination of the offshore processing agreements made in January with Duke Oil Company, Aiteo Energy Resources and Sahara Energy Resources, saying that it believed the agreements were skewed in favour of the companies.
 
The statement added that a number of mostly local companies have been approached to bid for new OPA deals, including Oando , Sahara Energy, Calson, MRS, Duke Oil, BP/Nigermed and Total Trading.
 
NNPC's moves come a day after President Buhari approved cancellation of crude oil swap deals for refined products between NNPC and oil traders.
 
 
(Reporting by Camillus Eboh; Writing by Alexis Akwagyiram; Editing by David Goodman)
Maritime Reporter Magazine Cover May 2018 - Marine Propulsion Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News