The Nigerian National Petroleum Corporation (NNPC) has announced the signing of a crude for product deal with the British Petroleum (BP) for the next six months.
According to NNPC, the new agreement is to help the country meet its fuel needs ahead of the end year holidays and next year’s General Election.
The corporation currently has swap contracts known as Direct Sale Direct Purchase (DSDP) with some local and foreign oil firms. The new agreement will see BP account for 20 per cent of the country’s total fuel needs.
NNPC sells crude oil to refiners or trading houses, who in return, supply mainly gasoline and other petroleum products such as diesel. NNPC currently imports about 70% of fuel into the country.
British Petroleum Partnering with a local firm
NNPC said that BP will be partnered with a Nigerian firm, AYM Shafa limited – a leading Oil and Gas marketing and distribution Company that currently has 150 retail outlets and depots across the country.
According to Group Managing Director NNPC, Maikanti Baru,
“BP’s partnership with AYM Shafa makes it a perfect fit for our plans to ensure that there is an adequate supply of products throughout the coming Yuletide and even beyond the election period.”
The end of the year period is usually associated with queues at filling stations with several motorists sleeping at the fuel stations during the Christmas and New Year festivities last year. The delay in signing the crude oil swap agreements was identified as a major cause of the fuel scarcity last year. The corporation has assured that it has mapped out strategies to ensure that Nigerians have a hitch-free festive period.