Comprehensive  Ghana Oil and Gas news, information, updates, analysis

News in Brief

$40bn Nigeria oil awarded to local companies

  • SOURCE: | qwesa2big
  • The Nigerian National Petroleum Corporation (NNPC) has awarded yearly crude oil lifting term contracts for 2014/2015 of about $40 billion to mostly Nigerian companies and by so doing, has downsized contracts awarded to international oil traders.


    With this development, external traders will have to partner with the local companies to access crude oil from Nigeria, Africa’s top producer.

    In a deviation from tradition, no contracts were awarded directly to foreign traders such as Glencore, Trafigura and Vitol – only Switzerland’s Mercuria won a contract.

    The crude lifting contracts cover around 340 million barrels of oil, valued at close to $40 billion annually based on current Brent prices, and run for a year, though they can be renewed. They were allocated to just 28 companies, as against about 50 in 2012.

    Several Nigerian oil companies that featured on the annual list for the first time include oil trading company Hyde Energy, oil and gas firm Springfield, and Barbedos Group, a conglomerate that also provides luxury aviation services.

    Nigeria is one of a small group of major oil producers that allocates its crude directly to trading houses, offering middlemen an opportunity to make margins through reselling the crude.

    Source: All Africa

    Get the latest news and updates on Ghana’s oil and gas value chain by following us Reporting Oil and Gas on twitter @oilgasghana and like our facebook page and get at us on Google+. Subscribe to our group to get updates.

    Leave a reply

    About Us
    Reporting Oil and Gas project was launched on 4th June 2009 at Takoradi, Western Region, Ghana by Penplusbytes ( with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector read more
    Twitter Activity Stream

    Partners We are proud to be associated with:

    Skip to toolbar