NNPC to endorse further fuel swaps with Shell, ExxonMobil
Image: Twitter – Nigeria International Petroleum Summit
The Nigerian National Petroleum Corporation (NNPC) will likely sign further crude-for-product deals with Shell and ExxonMobil, according to NNPC’s chief operating officer for upstream, Bello Rabiu.
Raibu told Reuters on Monday that Shell and ExxonMobil exited the downstream sector in Nigeria a couple of years ago “… but they are coming back for this particular arrangement, because it is an opportunity for them to get crude and sell their products to the refineries.”
NNPC announced in October that it had signed a similar deal with BP and would provide more details about the contract in the near future.
NNPC, which imports 70 percent of Nigeria’s fuel, has direct purchase agreements with 10 consortiums including trading houses Vitol, Trafigura, Mercuria and Total.
It extended the existing contracts to June 2019, but several trading sources in the consortiums requested new price terms.