This accounted for nearly half of the dca and around a tenth of the countrys average daily production figure b2. This nnpc total scholarship scheme is aimed to promote academic excellence and quality manpower development in the country. We are using our strong influence with nnpc jvc to. Nigerian energy company nnpc is relying heavily on swapping its crude for products such as gasoline as its refineries struggle to run, but an official at the state firm said its access to oil is.
Introduction petroleum products subsidies in nigeria are a. Four government institutions run nigerias oil industry affairs. The 50 companies were among a total of 254 that participated in the. Ppmc allocates 60,000 barrels per of crude oil to trafigura in. Regulation and oil wealth redistribution in nigeria.
December 2014 introduction 2 how this methodology statement is organized 2 part i. Following president muhammadu buharis approval to the nigerian national petroleum corporation nnpc for the cancellation of the offshore process contracts and crude oil swaps, the staterun oil firm has started the process of setting out new terms for the selection of new traders for the oil swap programme. The nnpc is managed by a board of directors appointed by the president of the federal republic of nigeria and, since restructuring in 1988, consists of three main arms. Oer is currently in dispute with the nnpc in relation to certain liftings done by the nnpc in 2008 and 2009. As africas leading crude oil producer, nigeria accounted for 26% of african and 2. The social and economic consequences of the fossil fuel. Nnpc signs interim crude swap agreement vanguard news. Our company outsources crude oil for buyers from nnpc bulk allocation, otherwise known as offopec. The oil trading guide otm provides a singular and full reference provide to the latest developments in the development and conduct of the worldwide oil markets along with. A sourcebook for understanding the extractive industries provides developing countries with a technical understanding and practical options around oil, gas, and mining. All offshore crude oil processing agreements and crude oil swap deals for refined petroleum products between the nigerian national petroleum corporation, nnpc, and oil traders around the world. Pdf reflections on nigerias crude petroleum in an era of. Nigeria starts investigating crude oil swap contracts. Annual statistics bulletin the annual statistical bulletin asb is the annual version of the monthly petroleum information mpi and includes an annual summary of nigerian oil and gas industry activities.
Nigerias national oil company, the nigerian national petroleum corporation nnpc. Nnpc data shows that the corporation allocated just over 79 million barrels or roughly 218,000 barrels a day to swaps in 2011 alone. Nnpc extends crude forproduct swaps until june 2019. According to the nnpc, about 800,000 barrels per day of crude have been made available for the latest programme. To optimise crude cost, essar oil processed its highest ever mix of heavy and ultraheavy crudes in fy 2014, accounting for 93% of its crude diet, compared with 86% in fy 2012.
This scholarship past question and answer contains questions such as reasoning, logic, analogy, v erbal, maths, english, iq test etc. Nnpc had in april replaced the offshore processing arrangement opa and crude oil swap contracts through which it imports. The nnpc total national merit scholarship questions download pdf below. Sabic sees price, margin squeeze in 2020, swings to loss in q4. Nnpc sells this oil to the pipelines and product marketing company ppmc, one of its subsidiaries. Click the small arrows to move the data one or three months forwards or backwards within the year in display.
A case for reform in nigeria executive summary nigerias national oil company, the nigerian national petroleum corporation nnpc, sells around one million barrels of oil a day, or almost half of the countrys total production. Bodily traits and refiningoil pricing arrangementsphysical oil marketsforward and futures contractsoptions and swapsoperations and logisticsaccounting and taxationcontrolling financial risklegal and regulatory controlotm. According to the international energy agency, in 2012, 40. The nigerian national petroleum corporation, nnpc, has signed an interim crude oil swap contract with four companies that is expected to last from october to december 2015. Nigerian national petroleum corporation nnpc and reuters. The group has made full provision for the recievables due to the uncertainty associated with the timing of collectability and the related dispute. Commercial framework for crude oil lifting, marketing. Commodity or crude oil shall mean nigerian origin standard export grade bonny light crude oil blco in bulk as specified in clauses 4 and 6 with specifications, as specified by nnpc, and set forth in annex a to this agreement. The economics of privatizing and deregulating the nigerian downstream oil sector. Crude oil methodology platts assessments and indexes. So what it does it tell importers to import the refined products, then calculates the value of that product in crude oil and pays the importers with crude oil. The niger delta accounts for the huge revenues to the government generated from its oil wealth.
Nigerias national oil company, the nigerian national petroleum corporation nnpc, sells around one million barrels of oil a day, or almost half of the countrys total production. The petroleum sector accounted for about 14% of nigerias real gross domestic product and over. Mar 01, 2015 crude oil methodology platts assessments and indexes 1. Ppmc is supposed to send the oil to nigerias four stateowned refineries, sell the resulting petroleum products, and pay nnpc for the crude it received, and then nnpc is supposed to pay the government. Oil, gas, and mining by world bank group publications issuu.
Nigerian state oil company nnpc said that 2 companies had bid for the right to swap the nations crude oil for fuels as a tender for the deals closed on thursday. Volumes of crude oil and natural gas combined are often expressed in barrels of oil equivalent abbreviated boe whereby gas volumes in mcf are converted to barrels on the basis of energy. Profit oil, being the balance of available crude oil after. Nigerias nnpc says oil access is not limitless for fuel. The legal backing for monetary policy by the bank derives from the various statutes of the bank such as the cbn act of 1958 as amended in cbn decree no. Glencore energy uk ltd v transworld oil ltd 2010 ewhc 141. Investigative forensic audit of crude oil revenues and remittances by nnpc january 2012 july 20 4. Understanding crude oil and product markets american movements in prices established in international crude oil markets. Speaking on the unwholesome activities of the scam artists, nnpc s group general manager, crude oil marketing division comd. The nigerian national petroleum corporation, nnpc, yesterday, said it has signed a sixmonth crude forproduct swap agreement otherwise known as direct saledirect purchase dsdp with bp oil. Aug 24, 2016 economic data us existing home sales due at 10. The nnpc provides the crude oil and pays the refining and other incidental costs. Nigerian state oil company nnpc said on sunday that 15 companies had won the right to swap the nations crude oil for fuels following a tender for the deals.
The balance is owed by the nigerian national petroleum corporation nnpc. Crude oil was first discovered in commercial quantity in oloibiri in presentday bayelsa state in 1956 when shell darcy drilled the first. The following tables present, for oil, bitumen and gas reserves, an estimate of the groups oil, bitumen and gas quantities by geographic areas as of december 31, 20, 2012, 2011, 2010, 2009 and 2008. According to the nnpc annual statistical bulletin, the amount of crude oil extracted from nigerian oil wells in 2012 was 8. Nnpc saves n66bn four months after cancelling oil swap.
Nnpc ppmc entered into crude oil products exchange agreement with messrs trafigura beheer b. Nnpc extends crudeforproduct swaps until june 2019. Following the discovery of crude oil by shell darcy petroleum, pioneer production began in 1958 from the companys oil field in oloibiri in the eastern niger delta. Registration document total pdf free online publishing. Pdf nigeria has been noted to hold the largest proven natural gas. Nigerian nnpc calls tender to import petroleum products. Data quality and data submission 2 what to report 2 how to report 3 moc data publishing principles 3 part ii. The oil and gas industry and the nigerian environment. Nnpc warns of crude oil scam nigerian national petroleum. Trafigura said to end nigerian oilswap deal on tighter. Crude oil and condensate lifting nnpc liftings by account type nnpc asb 2015. Although the average annualised daily returns between 1990 and 2011 on crude oil were about 7.
The 1996 marginal field decree empowers the nigerian president to farm out marginal fields to indigenous oil companies if the oil field has been lying redundant for a period of time exceeding 10 years. Feb 03, 2010 in the meantime, when we receive the nnpc nigerian national petroleum corporation allowable for may and confirmation of available support vessels etc. Nnpc, bp sign 6month crudeforproduct swap vanguard news. Between 2010 and 2015, the commercial model for crude oil trade was premised on the controversial oil forproduct swaps until nnpc signed its first round of direct sale of crude oil.
With past contracts, this openended system created a monthly bottleneck in which traders jockeyed to receive particular grades and volumes from key officials. The nigerian national petroleum corporation nnpc has issued an invitation for bids under the model of direct sale of crude oil and direct purchase of petroleum products dsdp. The nigerian national petroleum corporation nnpc, has contracted about 34 companies to carry out its crude oil for fuel exchange deal. The crude oil guides contain the primary specifications and methodologies for platts crude oil cargo and pipeline assessments throughout the world. Nnpc by law manages the joint venture between the nigerian federal government and a number of foreign multinational corporations, which include royal dutch shell, agip, exxonmobil, total s.
The oil and gas industry is one of the sectors that has contributed to the world positively in numerous ways. Oil product stocks hit 5week high as middle distillates jump 27% january 29, 2020. Nnpc was established on 1 april 1977 as a merger of the nigerian national oil corporation and the federal ministry of mines and steel. National and other figures captured are used to aid statistical analysis. Lifecycle assessment of selfgenerated electricity in. President buhari has said that major reforms in the oil industry will be one of his administrations goals and as he looks to clean up an industry that is the. How crude oil swaps, opas stalled nnpc refinery operations 21 jun 2015 the crude for petroleum products exchange agreements, better known as crude oil swaps, and offshore processing agreements opas, entered into by the nigerian national petroleum corporation nnpc and oil traders between 2011 and 2014, are to blame for the abysmally low output from nnpc s refineries and the high. Under offshore processing agreements opa, the nnpc provides crude oil to another party who would refine the crude oil on behalf of the nnpc and return the refined products to the nnpc based on the yield slate of the partys refinery. Duke oil, an nnpc subsidiary, which has a 30,000 bpd contract, could also not be reached for comment. The winners of the 2017 crude oil term contracts include. Due to the semidead refineries we have, nnpc of course has to import refined products petrol and kerosene but it often doesnt have the money to pay importers in cash. Nigerian national petroleum corporation nnpc controls and owns the bulk of the transmission and. Nigeria has finally canceled its corrupt oil swap deals.
The various components are designed to give platts subscribers as much information as possible about a wide. Tax oil shall be allocated to nnpc in such quantum as will generate an amount of proceeds equal to the ppt liability payable each month. Mar 20, 2017 nnpcs dsdp contracts do not promise holders particular grades of crude oil, give them rights to demand certain grades, or guarantee that they will get their full promised allocations. Dont trade alone, join a group of quant traders in a live trading room. By march, 2016 the number of rigs had decreased by 75% since the peak in sept. About 2 companies bid for the deals, nigerian national petroleum corp nnpc said in may. Of the total quantity, nnpc lifted 255,546,455 barrels 36. Trafigura beheer bv, the thirdlargest crude trader, has scrapped a controversial productsswap deal with nigerias national oil company, according to a person familiar with the matter. Taleveras petroleum trading bv, an arm of taleveras was one of nigerian companies, whose services were enlisted by duke oil, an international oil trading company wholly owned by the nigerian national petroleum corporation nnpc. Securing fair value from nigerias dsdp contracts natural. The nigerian national petroleum corporation nnpc wants prospective crude oil buyers to beware of invites to hotel rooms for the sale of the product.
Select ssrn networks to refine search refine search by network close. Pdf this paper examined some aspects of nigerias crude petroleum within the period of economic depression, with particular emphasis on its. Nigeria has finally canceled its shady oil swap deals quartz africa. Oil spillage is a major environmental problem in nigeria. The dsdp, a system nnpc uses to swap crude for fuel, was introduced a year ago. Audit report on nnpc by vanguard media limited issuu. Sep 30, 2015 eiti does not provide a mechanism for analyzing the terms of crudeforrefinedproduct swaps, in which oilproducing countries that lack refining capacity exchange crude for fuels, rather than selling it for cash. Nov 04, 2015 nigeria has finally canceled its shady oil swap deals. In december it received an nnpc contract for crude oil lifting. Americas, north america, united states of america, emea, europe, russia, switzerland, middle east, saudi arabia. Fifty indigenous and foreign companies have been awarded contracts to lift nigerias crude for the 20182019 crude oil term. The nigerian national petroleum corporation nnpc was established to control the governments share of the international oil operations. Pdf oil spill incidents and pipeline vandalization in.
Understanding crude oil andproductmarketsprimerhigh. An act to dissolve the nigerian national oil corporation and to establish the nigerian national petroleum corporation empowered to engage in all commercial activities relating to the petroleum industry and to enforce all regulatory measures relating to the general control of the petroleum. The nigeria petroleum refining company nprc exploration for crude oil commenced in nigeria in 1937 when shell darcy was granted the sole concessionary rights over the whole territory of the country nigerian national petroleum corporation nnpc. Nigeria has been accorded the largest economy in africa and one of africas burgeoning economies. Click below to download nnpc s annual statistical bulletins. The arrangement is crude for product exchange process barter arrangement, which simply means you load the crude and. Nnpc had previously said this years contracts would exchange up to 800,000 bpd of crude oil, though at some 40 percent of peak exports that target was seen by markets as unlikely. Nigeria awards crudeforproduct swap deals to 15 firms. The swaps consume a significant portion of the crude oil nnpc has to sell. The majority of the crude oil flows comes from the middle east towards the consumer countries in the. By section 2 1 of the nnpc act, the nigerian president may appoint an alternate chairman for the nnpc board.
In 2012, eterna was charged by the efcc with cheating the government out of 1. The deals, which were previously referred to as offshore crude oil processing agreements opas and crude forproducts exchange arrangements. The new direct salesdirect purchase process will now see the nnpc sell crude and buy refined. This report is a reflection of activities of the nigerian national petroleum corporation nnpc in the year 2015. The nigerian national petroleum corporation nnpc has canceled a.
Nigerias nnpc reveals 2 firms companies bid for oil swaps. Nigeria has finally canceled its shady oil swap deals. Nigerian national petroleum corporation nnpc has awarded its 2017 crude oil term contracts to 39 companies. Methodology and specifications guide crude oil latest update. However, a high percentage of the population lives in extreme poverty and is largely rural, accounting for about 51% of the total, approximately 96 million people in 2016. The trading room tradelab live sessions conducted online by the riosquant team offer a pragmatic, real world perspective of trading the global markets in real time for the active. Despite this shift, vadinar refinery continued to maintain the production of high margin middle and light distillates of 85% in fy 2014, similar to its product. The corporation in a statement released on the 3rd of january 2017, stated that the contracts cover about 1.
Between 2010 and 2015, the commercial model for crude oil trade was premised on the controversial oilforproduct swaps until nnpc signed its first round of. How crude oil swaps, opas stalled nnpc refinery operations. Nov 05, 2015 ohi alegbe, spokesman of nnpc has said scrapping the swap deals will enshrine transparency and eliminate the activities of middlemen in the crude oil exchange for product matrix. Oil fell over 2 percent on friday, extending the weeks loss to the largest in eight months, pressured by swelling storage of crude on both land and sea.
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