NNPC denies allegations of sharp practices in crude oil sales

Semiu Salami
Semiu Salami
Oil drilling

The management of the Nigerian National Petroleum Corporation, NNPC on Sunday denied a report by a Swiss-based agency which accused the corporation of colluding with some local and international oil traders to execute unfair industry practices.

Tumini Green, the Acting Group General Manager (Public Affairs) of NNPC, who made the denial in Abuja at a news conference described the publication as bogus, adding that it also contained inaccurate and poorly researched data, which defied common sense and verifiable evidence on the ground in Nigeria.

“For instance, how can close observers of the Nigerian oil and gas industry say that the process leading to the award of Term Contract for lifting of Nigeria’s crude is shrouded in mystery?

“It is common knowledge that the call for tender for this contract is periodically published by almost all the newspapers in Nigeria via paid advert placements by the NNPC,’’ she said.

Green said that in practice, the NNPC sold the Federal Government’s equity crude oil to Lifters/Traders engaged on Annual Term Contract basis.

The NNPC spokesperson said that at present, there were about 50 such term contracts.

“No company has a monopoly or exclusive right to lift any quantity of Nigerian crude oil. The process of selection of traders/lifters is competitive and transparent.

“Traders lift crude oil according to the terms of contractual agreements applicable to all traders.

“This is on Free on Board (FOB) basis and proceeds are paid directly into designated CBN Crude Oil Sales Accounts,’’ she said.

On the allegation that Nigeria’s crude was sold to some companies at special discounted rate, she stressed that Nigerian crude was sold at the published Official Selling Price (OSP).

“Nigeria crude oil is sold at published Official Selling Price (OSP), which is benchmarked against the internationally recognised pricing institution.

“OSP differentials are crude stream determined and cannot favour an individual or group of traders as being insinuated,’’ she said.

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