Nigeria’s state-oil firm, the Nigerian National Petroleum Corporation (NNPC), said it has signed a crude for product deal with the British Petroleum (BP) for the next six months. The NNPC said the new deal will help Nigeria meet its fuel needs ahead of the end year holidays and next year’s General Election.
NNPC currently has swap contracts known as Direct Sale Direct Purchase (DSDP) with some local and foreign oil firms. The new deal with British Petroleum, will see the British firm provide 20 percent of Nigeria’s total fuel needs.
The state-oil firm, which currently imports about 20 percent of its fuel into the country, sells crude oil to refiners or trading houses, who in return, supply mainly gasoline and other petroleum products such as diesel.
British Petroleum will partner with AYM Shafa limited, a leading local oil and gas marketing and distribution company that currently has 150 retail outlets and depots across the country.
NNPC Group Managing Director, Maikanti Baru said “BP’s partnership with AYM Shafa makes it a perfect fit for our plans to ensure there is an adequate supply of products throughout the coming Yuletide and even beyond the election period”.
In Nigeria, the final weeks of the year are usually associated with queues at filling stations. In 2017, there were queues at filling stations with several motorists sleeping at the fuel stations during the Christmas and New Year festivities.
A delay in signing the crude oil swap agreements was identified as a major cause of the fuel scarcity in 2017. NNPC promised to implement strategies to ensure Nigerians are not deprived of fuel this year.