Nigeria Awards 39 Crude-Oil Term Contracts for 2017
January 04 2017 - 09:57AM
Dow Jones News
By Obafemi Oredein
IBADAN, Nigeria--State-owned Nigerian National Petroleum Corp.
(NNP.YY) awarded crude-oil term contracts to 39 companies for the
year to end-December after receiving 224 bids.
The contracts are for 32,000 barrels a day except for Duke Oil
Ltd., an oil trading arm of the NNPC, which received a 90,000
barrels-a-day contract, Mele Kyari, NNPC general manager at its
crude-oil marketing division, said on Wednesday. Oil has been
trading at around $52 a barrel.
Of the 39 companies, 11 are international trading firms, among
them the trading arms of just two major oil producers--BP PLC and
Total SA--in addition to companies such as Glencore PLC, Heritage
Oil PLC, and Trafigura Beheer NV.
Three national oil companies are also on the list, namely
China's Sinopec, India's Indian Oil Corp. and SacOil Holdings of
South Africa.
Five oil refineries also secured contracts: Hindustan Refinery
in India, Varo Energy, which owns and operates the Cressier
refinery in Switzerland; Cameroon's Sonara refinery, India's Bharat
Petroleum Corp. and Cepsa SAU of Spain.
NNPC awarded the remainder of the bids to Nigerian
companies.
Nigeria, Africa's largest crude exporter, relies on oil exports
for more than 90% of its foreign-exchange earnings and around 70%
of government revenue, according to the International Monetary
Fund.
The decline in the price of oil over the past two years has
resulted in a huge loss of revenue for the country, depriving
Nigeria of dollars needed for imports.
The West African nation has said it expects to produce 2.2
million barrels of crude a day this year, though attacks on energy
facilities in its southern Niger Delta by armed militants could
continue to limit output.
The 26 Nigerian crude oil grades on offer included Bonny Light,
Forcados Blend, Bonga Qua Iboe Light, Yobo Blend, Erha and Escravos
Light, Okwori, Okoro, Ima and Asaratoru, according to the NNPC.
Write to Obafemi Oredein at realtimedesklondon@dowjones.com
(END) Dow Jones Newswires
January 04, 2017 09:42 ET (14:42 GMT)
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