Nigerian state oil company ends delivery and offshore processing deals (updated)

Capitan Investment

26/08/2015 19:06

(Adds quotes, detail, background) 
    ABUJA, Aug 26 (Reuters) - Nigeria's state oil company has 
cancelled its contract for the delivery of crude to the 
country's refineries in Warri, Port Harcourt and Kaduna, it said 
on Wednesday.  
    Oil sales account for about 70 percent of government revenue 
in Nigeria, Africa's top crude producer, but the country imports 
most of the fuel used by its 170 million inhabitants because of 
its inefficient, ageing refineries. 
    "The corporation has cancelled the current contract due to 
exorbitant cost and inappropriate process of engagement," a 
Nigerian National Petroleum Corp (NNPC) statement said, adding 
that the aim is to cut costs and improve efficiency. 
    Overhauling the energy sector in Africa's biggest economy 
has been a priority of President Muhammadu Buhari, who was 
inaugurated on May 29 after being elected largely on his pledge 
to fight corruption.  
    NNPC also announced the termination of the offshore 
processing agreements made in January with Duke Oil Company, 
Aiteo Energy Resources and Sahara Energy Resources, saying that 
it believed the agreements were skewed in favour of the 
companies. 
    The statement added that a number of mostly local companies 
have been approached to bid for new OPA deals, including Oando 
 OANDO.LG , Sahara Energy  SAH.V , Calson, MRS, Duke Oil, 
BP/Nigermed  BP.L  and Total Trading  TOTF.PA .  
    NNPC's moves come a day after President Buhari approved 
cancellation of crude oil swap deals for refined products 
between NNPC and oil traders.  ID:nL1N1100E8  
 
 (Reporting by Camillus Eboh; Writing by Alexis Akwagyiram; 
Editing by David Goodman) 
 ((alexis.akwagyiram@thomsonreuters.com; +234 8188 779 319)) 
 
Keywords: NIGERIA OIL/