NNPC approves interim swap agreement with 3 subsidiaries ….. VANGUARD

The Nigerian National Petroleum Corporation, NNPC, yesterday said it signed an interim Offshore Processing Agreement, OPA, contracts with three of its Joint Venture, JV, companies.

The corporation in a statement issued upon Vanguard enquiries on the deal identified the companies to include Duke Oil, Carlson and Napoil.

The statement said the move is meant “to boost the supply of refined petroleum products,” adding that it “will lapse with the advent of the fresh OPA contracts envisaged to come into effect at the end of the ongoing public tender process.”

However, a Reuters report said the Corporation signed an interim crude oil swap contract with four companies that is expected to last from October to December 2015.

Quoting inside sources, the report said that two of the agreements are with NNPC JV companies – one with Swiss trader, Vitol called Calson, and the other with commodities trader, Trafigura called Napoil.

The other two are with non-incorporated Joint Ventures between oil major BP and Nigermed Limited, and NNPC’s trading arm, Duke Oil Company with Sahara Group.

But NNPC’s spokesman, Ohi Alegbe, who could not explain how the Sahara Group, which contract was among those revoked by the Corporation re-entered the deal when contacted by Vanguard, was then forced to issue the statement.

He explained that the interim agreement is in a bid “to sustain the prevailing unimpeded nationwide supply and distribution of petroleum products.”