NNPC, BP sign 6-month crude-for-product swap
The Nigerian National Petroleum Corporation, NNPC, yesterday, said it has signed a six-month crude-for-product swap agreement otherwise known as Direct Sale-Direct Purchase (DSDP) with BP Oil International Limited, the trading arm of British Petroleum (BP), for the supply of Premium Motor Spirit (PMS) also known as petrol.
In a statement in Abuja, NNPC said this latest agreement would represent 20 per cent of NNPC’s total PMS supply under the DSDP arrangement, which basically allows the Corporation to exchange crude oil with international oil traders for imported petroleum products over a period of time.
It added that this was part of measures to sustain the robust supply of petroleum products across the country and especially going into the Yuletide period and beyond.
Speaking shortly after a brief signing ceremony in Abuja, Group Managing Director of NNPC, Mr. Maikanti Baru, said as the nation’s products supplier of last resort, NNPC was committed to products availability by inviting new and old players to play in the Nigerian oil sector.
Baru stated: “As a reliable supplier, we think BP is a brand that we can always partner with. We trust the company and we have a good relationship with it. We also believe in the company’s commitment towards the development of local content.”
Mr. John Goodridge, Head of Marketing and Origination, BP Oil International, said it was a great honour for his company to be trusted by NNPC as one of its strategic suppliers.