The Nigerian National Petroleum Corporation (NNPC), has issued its 2016 crude oil term contracts to 21 companies, going directly to international refineries, trading houses and local downstream firms, according to reuters.
The contracts cover 991,000 barrels per day (bpd) of oil, worth $13.5 billion at current crude oil prices, which is roughly half of Nigeria’s crude oil production of just under 2 million bpd.
The list includes refiners such as Spain’s Cepsa, Italy’s Saras, India’s IOC and ENOC of the Emirates, as well as trading houses Trafigura, Mercuria and Vitol and international oil companies ENI, Total, Exxon and Shell, while the remainder are made up of the Nigerian downstream and NNPC trading companies.
The 2016 contract list has been reduced by more than half compared with the final 2015 contract list, which consisted of 43 companies and did not include any global traders.
This is in line with the restructuring process of the NNPC which the Minister of state for Petroleum resources Dr. Ibe Kachikwu promised.