NNPC,British Petroleum Agree On Supply Of PMS

By Ikenga Chronicles November 2, 2018

NNPC,British Petroleum Agree On Supply Of PMS

The Nigerian National Petroleum Corporation (NNPC) has signed a six-month crude-for-product deal with British Petroleum (BP) to ensure the availability of Premium Motor Spirit (also known as petrol) throughout the upcoming yuletide season spanning December 2018 to January 2019.

Group Managing Director of the NNPC Dr. Maikanti Baru who spoke after the brief signing ceremony at the NNPC Towers yesterday, said the six-month Direct Sale-Direct Purchase (DSDP) agreement will be executed through BP’s trading arm, BP Oil International Limited.

He noted that NNPC already has 10 similar deals for a total of over 300,000 barrels per day of crude out of its close to 1.9 million bpd of production as of October.

Baru however said the latest agreement with BP represents 20 percent of NNPC’s total PMS supply under the DSDP arrangement, which he explained allows the Nigerian company to exchange crude oil with international oil traders for imported petroleum products.

According to Baru, over the years, BP had demonstrated the capacity and robustness to augment the forecasted shortfall by NNPC, especially as the winter period approaches and with the nation’s elections underway early into the New Year.

“As a reliable supplier, we think BP is a brand that we can always partner with. We trust the company and we have a good relationship with it. We also believe in the company’s commitment towards the development of local content,” Baru stated.

NNPC imports about 70 percent of Nigeria’s fuel needs, mainly petrol, via swap contracts known as Direct Sale Direct Purchase (DSDP). Foreign firms must pair up with a local company to deliver the products. NNPC said that BP will be partnered by Nigerian firm, AYM Shafa.