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Nigeria petrol deals highlight weaknesses
Nigerian National Petroleum Corporation (NNPC) has awarded direct sale-direct purchase (DSDP) contracts to 15 consortia grouping more than 30 energy companies, oil traders and politically well-connected Nigerian partners. The contracts are effectively a swaps arrangement where NNPC supplies export crude to companies which in exchange supply NNPC with a similar amount in value of gasoline and diesel to be imported into Nigeria. The companies have won access to up to 300,000 b/d of NNPC’s crude exports in exchange for supplying gasoline and diesel to Africa’s largest fuels import market.
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