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Kyari: NNPC Terminating Crude Oil Swap Contracts
The Nigerian National Petroleum Company (NNPC) Limited has disclosed that it has commenced the termination of crude oil swap contracts and will pay cash for petrol imports, Reuters is reporting.
Mele Kyari, NNPC’s group chief executive officer (GCEO), said private companies could begin importing petrol in June.
He said the national oil company will now pay for its purchases in cash by terminating the crude swap contracts, adding that less petrol will be imported by NNPC while private companies will import the bulk.
“In the last four months, we practically terminated all direct sale direct purchase (DSDP) contracts. And we now have an arm’s-length process where we can pay cash for the imports,” Kyari told Reuters on Saturday.
In the Reuters report, Kyari said this is the first time NNPC has said it is terminating crude swap contracts, emphasising that by importing less petrol as private companies import the bulk, NNPC would be able to pay for its purchases in cash.