Nigerian state oil firm NNPC will award new crude for oil products swap agreements to Total , Varo Energy, Cepsa and ENI, the head of its crude marketing unit said on Friday.
Despite exporting some 2 million barrels per day (bpd) of crude oil, Nigeria is almost wholly reliant on imported gasoline, kerosene and other petroleum products.
The deals, which are expected to begin in February, differ from the former “offshore processing” agreements as they are directly with refineries who can use the crude to produce the oil products the country needs, NNPC’s Mele Kyari told reporters.
NNPC’s head of corporate planning, Bello Rabiu, said there was no need to budget money for fuel subsidies in 2016, as the country can reduce the cost of imported fuel below the current retail price.
“In the next 12 months, the price of oil will definitely not be high…securing the pipeline systems, removing the corrupt issues and ensuring that we pay only for what we consume…if we can get all these stages done…that will eliminate any call for subsidy in the next few months,” Rabiu said.