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No Monopoly In Lifting Of Crude Oil — NNPC

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IMAGE: NNPC Towers in Abuja »



The Nigerian National Petroleum Corporation (NNPC) has  denied  the recent report by Swiss -based NGO, The Berne Declaration, which accused the corporation of collusion with some local and international oil traders to execute unfair industry practices.

A statement issued yesterday by the NNPC acting Spokesperson, Tumini Green, noted that the publication was not “only bogus, but strewn with inaccurate and poorly researched data which defy common sense and verifiable evidence on ground in Nigeria.

“For instance, how can anybody who claims to be a close observer of the Nigeria oil and gas industry say that the process leading to the award of Term Contract for lifting of Nigeria’s crude is shrouded in mystery when it is common knowledge that the call for tender for this contract is periodically published by almost all the newspapers in Nigeria via paid advertisement placements by the NNPC?” Green queried.

She explained that in practice, the corporation sells Nigerian government’s  equity crude oil to lifters/traders engaged on Annual Term Contract basis, adding that at present there were about 50 such term contracts.

She said: “No company has a monopoly or exclusive right to lift any quantity of Nigeria’s crude oil. The process of selection of traders/lifters is competitive and transparent. Traders lift crude oil according to the terms of contractual agreements applicable to all traders, among others on (Free on Board) FOB basis and proceeds paid directly into designated Central Bank of Nigeria’s crude oil sales accounts.

“Nigeria’s crude oil is sold at published official selling price (OSP) which is not only bench-marked against the internationally recognised pricing institution, Platts daily publications, but also fixed after a critical analysis of market fundamentals and price determinants at global level,” she explained.

Article Credit: Leadership

Updated 5 Years ago

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