Don't Miss


Home   >   Business   >   Industries   >   Energy   >   NNPC rejects allegations of sharp practices in crude oil sales

NNPC rejects allegations of sharp practices in crude oil sales

By on November 11, 2013

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, told journalists in Abuja that the publication contained inaccurate and poorly researched data, “which defied common sense and verifiable evidence on the ground in Nigeria”.NNPC_officials

“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?,” she said. “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.”

Ms Green said that in practice, the NNPC sold the federal government’s equity crude oil to lifters/traders engaged on Annual Term Contract basis; adding 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,” she said. “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.”

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

Ms Green thanked the Nigerian media for their sustained support for the growth of the oil and gas industry. She, nonetheless, appealed to them to always resist the temptation of endorsing foreign media reports about the industry as the truth.

 

[Nigerian Telegraph]