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    NNPC extends Nigeria’s oil-for-fuel swap contracts until June

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    Naija247news Editorial Teamhttps://www.naija247news.com/
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    LAGOS, Feb 23 – Nigerian state oil company NNPC has extended until June its contracts with private companies to swap crude oil for fuels, a company spokesman told Reuters.

    That’s the second extension of the one-year contracts to exchange more than 300,000 barrels per day (bpd) with 15 company pairings, which had been set to expire in October 2020.

    “The DSDP was extended till June 2021 to enable us conclude the ongoing process of putting new contact in place,” NNPC spokesman Kennie Obateru said on Monday.

    NNPC issued a tender for new contracts, known as direct sale, direct purchase (DSDP), in December last year. The coveted swaps supply nearly all of Nigeria’s gasoline, and some of its diesel and jet fuel, in exchange for cargoes of crude oil.

    Nigeria eliminated pump price caps for gasoline last year, but NNPC controls over ex depot pricing have made it tough for private companies to make money importing the fuel, leaving the government as the sole supplier.

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