Business Hilights
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Shocks as NNPC issues 2-year crude lifting contracts to traders rather than usual one

Though the Nigerian National Petroleum Corporation (NNPC) is yet to make it public, indications have emerged that it has issued crude export contracts that are expected to last two years instead of the usual one year.

An initial preliminary list, according to Reuters, showed 30 companies, including the world’s largest energy traders, Vitol, Trafigura and Glencore.

The final list could contain between 50 and 60 companies, the sources added even though the Corporation is yet to make any official statement on the crude lifting deals for this year which analysts say, emerged later than usual.

Business Hilights recalls that in 2017, the NNPC published results in January, awarding contracts to 39 companies, other companies included in the partial 2018 list are Total, Spain’s Cepsa, the trading arm of Azerbaijan’s Socar and Lukoil’s trading subsidiary, Litasco.

Also linked to the deal include Switzerland-based Mocoh and Petraco, Lebanon’s BB Energy and Nigerian firms, Sahara Group, Eterna and Oando, are also on the list as part of local content consolidation.

A consortium of qualified indigenous companies capable of joining the lifting firms had last year carried out a strong campaign for their consideration this year and earlier signals have shown that their pleas may have been considered as more local firms are now involved as stakeholders wait for the release of official list by the NNPC.