Nigerian National Petroleum Corporation awards 2017 crude oil contracts

LAGOS/LONDON (Reuters) – State-run Nigerian National Petroleum Corporation (NNPC) has awarded its 2017 crude oil term contracts to 39 companies, the company said on Tuesday.

The contracts covering about 1.31 million barrels per day (bpd) of crude oil were awarded to 18 Nigerian companies, 11 international trading houses, five foreign refineries, three national oil companies and two “NNPC Group trading arms,” the firm said in a statement.

NNPC said the contracts, worth a total of more than $72 million per day at Tuesday’s crude prices of around $55.60 per barrel, were each for 32,000 barrels per day (bpd), apart from Duke Oil Ltd, an NNPC Group subsidiary, which was for 90,000 bpd.

The list compared with 27 companies that won contracts of varying sizes for 2016. OPEC member Nigeria typically produces just over 2 million bpd of crude oil, although its 2016 output was hobbled by militant attacks.

China’s Sinopec and India’s Indian Oil Corp were among the winners, as were international firms including the trading arms of BP and Total and trading houses Litasco and Glencore.

Absent from this year’s list were the trading arms of oil majors ExxonMobil, Shell and Eni, trading houses Mercuria and Taleveras and refiner Saras, all of whom were on the 2016 contract list. Vitol’s trading arm was also not on the list, although, Varo Energy, a joint venture between Vitol and private equity firm Carlyle Group, was.

NNPC head Maikanti Baru said the group had received bids from 224 companies. He said the decision to announce the winners reflected NNPC’s commitment to transparency.

“We’ll ensure transparency and fairness in the process,” Baru said in a statement.

 

Contract holder Volume (‘000 bpd)

Refiners

Hindustan Refinery 32

Varo Energy 32

Sonara Refinery 32

Bharat Petroleum 32

Cepsa 32

International Trading Companies

Trafigura 32

ENOC 32

BP Trading 32

Total Trading 32

UCL Petro Energy 32

Mocoh Trading 32

Trevier Petroleum 32

Heritage Oil 32

Levene Energy 32

Glencore 32

Litasco Supply and 32

Trading

Government to Government

Indian Oil Corp. (India – 32

IOC)

Sinopec (China) 32

SacOil (South Africa) 32

Nigerian Companies

Oando 32

Sahara Energy Resouce LTD 32

MRS Oil and Gas 32

A.A. Rano Nigeria Limited 32

Bono 32

Masters Energy 32

Hyde Energy 32

Britania-U 32

North West Petroleum 32

Optima Energy 32

AMG Petroenergy 32

Arkleen Oil & Gas Ltd 32

Shoreline Limited 32

Emo Oil 32

Setana Oil 32

Prudent Energy 32

NNPC Trading Companies

Calson/Hyson 32

Duke Oil Incorporated 90

Total: 39 1.31 million

 

 

(Reporting By Alexis Akwagyiram in Lagos and Libby George in London; editing by Grant McCool)

 

Related Content

Lagos investigates gas plant explosion, may review 2020 budget

As residents and Nigeria’s state-owned oil company NNPC contest the cause of Sunday’s explosion, Lagos State Governor, Babajide Sanwo-Olu says the state has set up a fact-finding committee on the incident. CNBC Africa caught up with him at the site of the incident where he shared plans to open an emergency two billion Naira fund, and disclosed that the state may have to adjust its 2020 budget.

NNPC: Lagos fire at gas plant likely triggered by gas explosion

An explosion at a gas processing plant in Lagos has left at least 15 people dead and destroyed about 50 buildings. For more on this story, The Acting Coordinator of the Lagos Territorial Office of National Emergency Management Agency, Ibrahim Farinloye joins CNBC Africa for more.

Nigeria discovers oil & gas deposits in Benue

Nigeria’s National Petroleum Corporation (NNPC) says it has discovered oil and gas deposits in the Kolmani River II Well on the Upper Benue Trough, Gongola Basin, in the North- Eastern part of the country. To discuss this story and global response to oil dynamics, Abiodun Adesanya, CEO of Dege Conek joins CNBC Africa.

Uganda-Tanzania pipeline project hits a snag – how will this impact the region?

Since the initial agreement to construct a crude oil export pipeline from Uganda to Tanzania was made in 2016, the project has seen some setbacks and has yet to be completed. Now all activities have been suspended on the project – to unpack why and what this could mean for the rest of the region, Analyst and Chief Strategist, Ken Agutamba joins CNBC Africa for more.

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

More from CNBC Africa

Uganda Securities Exchange CEO on how COVID-19 is impacting the bourse

The economic turmoil caused by the COVID-19 pandemic has had wide severe impact on financial markets not leaving behind stocks, bond and commodity markets. Uganda Securities Exchange CEO, Paul Bwiso joins CNBC Africa for more.

COVID-19: How the pandemic is accelerating the digitalization of healthcare

The COVID-19 pandemic has caused huge disruptions in healthcare provision, highlighting the need to adopt and invest in digitalization. Dr. Wanjeri Millicent Loice, Director and Content Manager, Toto Health Kenya joins CNBC Africa for more.

AfDB’s Nnenna Nwabufo on how COVID-19 has impacted African economies

According to the African Development Bank’s revised African Economic Outlook, though the continent is expected to rebound next year; it could lose a quarter of a trillion dollars in economic output for the rest of this year and 2021. Nnenna Nwabufo, Acting Director-General of East Africa Regional Office at the AfDB joins CNBC Africa for more.

Kenyan sports minister Amina Mohamed to bid for top WTO job

The Geneva-based body is seeking a replacement for Brazil’s Roberto Azevedo who is stepping down a year early at the end of August at a critical juncture for the trade watchdog.

Partner Content

Maktech’s Godwin Makyao: Now Is A Time of Entrepreneurial Opportunity in East Africa

As an executive decision-maker in both the telecommunications and tourism industries, Godwin Makyao could not have experienced a more diverse set of...

Sanlam launches urgent job-preservation initiative in response to COVID-19

Sanlam Investments is responding to the COVID-19 pandemic through large-scale support of the recovery of South African companies, from small enterprises to...

Trending Now

Steinhoff agrees to sell stake in Conforama France to Mobilux

JOHANNESBURG (Reuters) - Scandal-hit Steinhoff International agreed to sell its shares in furniture retailer Conforama France to Mobilux Sàrl, the parent company...

Namibia to ground national carrier’s license over cash hole

WINDHOEK (Reuters) - Cash-strapped Air Namibia will have its planes grounded at midnight on Wednesday after it failed to secure enough funding...

Uganda growth to sink as low as 0.4% this year – World Bank

KAMPALA (Reuters) - Ugandan economic growth is set to plunge to as low as 0.4% in 2020 from 5.6% last year as...

How retirement funds can contribute to rebuilding SA’s economy

Sanlam Benchmark Symposium: Sanlam has conducted research across a wide breadth of employers, retirement funds and professional consultants to benchmark their employee benefits experiences of the lock-down as well as their expectations of the future in a COVID-19 impacted economy. Chris Bishop spoke to Viresh Maharaj, Managing Executive, Sanlam Corporate Distribution, about the outcomes of the research and current trends in the Industry....
- Advertisement -