Forte Oil, Oando win crude oil contracts

18 Dec 2015
Chibuike Oguh

Summary

NNPC also awarded contracts to foreign companies, including global oil trading houses – Trafigura, Mercuria and Vitol..

Oando Group CEO Wale Tinubu

The Nigerian National Petroleum Corporation (NNPC) has awarded its 2016 crude oil term lifting contracts to 21 companies, comprising indigenous firms, international refineries, and oil trading houses.

The contracts cover 991,000 barrels per day (bpd) of oil, worth $13.5 billion at current crude oil prices. The contracts cover about half of Nigeria’s current oil production of 2 million bpd.

The indigenous firms include: Forte Oil, Oando, Sahara Energy, MRS Oil and Gas, Eterna Oil, Northwest Petroleum and A.A. Rano Nigeria. Two NNPC trading companies – Duke Oil, Calson/Hyson – were also awarded oil-lifting contracts.

NNPC also awarded contracts to foreign companies, including global oil trading houses – Trafigura, Mercuria and Vitol, international oil companies – Eni, Total, Exxon and Shell, and international refineries – Spain’s Cepsa, Italy’s Saras, Indian Oil Corporation and Emirates National Oil Company also won contracts.

The full list for 2016 is much lower than the final 2015 contract list, which comprised 43 companies and did not include any global traders.

"Apart from ensuring transparency, the companies were carefully chosen based on their track records and trading experience to ensure that Nigerian crude cargoes are not left unsold," NNPC said in a statement.


 


Chibuike Oguh is Financial Nigeria's frontier markets analyst


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