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Nigeria to sell 10,000 barrels of Sweet Crude to Indian Firm Daily

By on October 9, 2012

Crude

Nigeria will sell 10,000 barrels per day (bpd) of its light sweet crude to an Indian State-run Bharat Petroleum Corporation (BPCL) based on a deal signed by Chevron and the Indian corporation.

 

However, Reuters reported that the contract states that that Chevron will provide barrels of light sweet crude to the Indian company at the official selling price, the contract is for the year ending March 2013

 

According to Reuters, “This is the first time that BPCL has signed a contract for Nigerian oil because it normally buys West African crude on the spot market.”

 

It was gathered the Indian company usually buys from Libya and Algeria under contract terms. The company operates 240,000 bpd and the 190,000bpd in Mumbai Refinery and Western India Kochi plant in Southern India respectively.

 

According to the National Bureau of Statistics (NBS) India had surpassed the United States to become Nigeria’s main market for oil exports. Before now, Nigeria exported mostly cashew nuts to India and received Machinery, rice and electronic but now petroleum.

 

The Indian High Commissioner to Nigeria, Mahesh Sachdev, noted that the development is an indication of growth and development in the two countries.

The NBS data also publicized that in 3 months, India-Nigeria bilateral trade reached $5.15 billion in the which, is the highest surpassing that of US.

According to NBS in the period under review (the first quarter of 2012), Nigeria exported was valued at USD 4.2 billion and $ 3.7 billion.

 

“If this growth persists, India can be expected to emerge as Nigeria’s largest trading partner in the next quarter. Interestingly, Nigeria was India’s 14th largest trading partner last year.” he added.