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Nigeria extends oil-for-fuel swap contracts until June - NNPC

Published 22/02/2021, 19:39
© Reuters.

LAGOS, Feb 22 (Reuters) - Nigerian state oil company NNPC
has extended until June its contracts with private companies to
swap crude oil for fuels, a company spokesman told Reuters.
That's the second extension of the one-year contracts to
exchange more than 300,000 barrels per day (bpd) with 15 company
pairings, which had been set to expire in October 2020.
"The DSDP was extended till June 2021 to enable us conclude
the ongoing process of putting new contact in place," NNPC
spokesman Kennie Obateru said on Monday.
NNPC issued a tender for new contracts, known as direct
sale, direct purchase (DSDP), in December last year. The coveted
swaps supply nearly all of Nigeria's gasoline, and some of its
diesel and jet fuel, in exchange for cargoes of crude oil.
Nigeria eliminated pump price caps for gasoline last year,
but NNPC controls over ex depot pricing have made it tough for
private companies to make money importing the fuel, leaving the
government as the sole supplier.

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