The Nigerian National Petroleum Corporation, NNPC has extended for six months its contracts with private companies to swap crude oil for petroleum products.In August last year, the NNPC announced the winners of its 2019/2020 contracts for the exchange of crude oil for imported petroleum products.
It said a total of fifteen groupings, with thirty-six companies in total, would participate in the 2019/2020 Direct Sale of crude oil and Direct Purchase of petroleum product arrangement.According to NNPC, under the DSDP scheme companies, including international trading houses and indigenous companies, are allocated crude supplies in exchange for the delivery of an equal value of petrol and other refined products to the NNPC.The contracts supply a large portion of Nigeria’s petrol, and some of its diesel and jet fuel, as it has not been profitable for private importers to bring in fuel.
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