Nigeria's oil-for-fuel swaps save US$500mn

22707273700 3c416c8537 oNigeria save US$500mn in oil-for-fuel swap. (Image source: Friends of the Earth/flickr)The Nigerian National Petroleum Corporation (NNPC) released a statement last week stating that its Direct Sale of Crude Oil and Direct Purchase of Products (DSDP) programme has saved over US$500mn to date

It was announced in a statement released on 3 February that the Nigerian National Petroleum Corporation (NNPC) have saved US$500mn from its Direct Sale of Crude Oil and Direct Purchase of Products (DSDP) programme which 

NNPC reportedly received 128 bids from companies that wanted to exchange processed fuels in exchange for unrefined crude in 2017. It was willing to exchange up to 800,000 bpd. According to CNBC, "This year's programme for DSDP (direct sale of crude oil and direct purchase of products) is about 800,000 barrels (per day) at most," Maikanti Baru, head of the Nigerian National Petroleum Corporation (NNPC), told reporters in Abuja after the bidding window had closed. 

According to All Africa, the DSDP arrangement, Mr. Ughumadu said, is a model introduced last year and is carried out through direct sales of crude oil to refiners or consultants, who in turn supply NNPC with the equivalent worth of products. The batch over which the bids were opened is scheduled to last for the next one year, starting from April 1, he added. 

Nigeria relies almost entirely on imported fuel, included gasoline, kerosene and other petroleum products, despite exporting 1.7mn bpd of crude each day. In exchange for the crude oil, Nigeria will take fuel with sulphur content of no higher than 50 parts per million. 

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