The Nation Newspaper

Tag: crude

  • Excess crude supply may affect Nigeria’s output

    Excess crude supply may affect Nigeria’s output

    Nigeria’s oil production and 2017 budget implementation could be hampered by the lull in global oil market, as crude price  droped to around $40 per barrel. Global benchmark crude, Brent, has remained below $47 per barrel this week, while OPEC daily basket price stood at $43.14 a barrel on Wednesday.

    Nigerian crude grades are under pressure with several unsold cargoes yearning for buyers. To underscore the market oversupply, traders said currently there were as many as 30 cargoes available for June and July loadings, in addition to the newly released August loading programmes, which are about 67 cargoes. If the remains low for a long a time, it will certainly hamper effective implementation of this year’s budget, which is hinged on oil benchmark of $44.5 per barrel.

    Furthermore, traders said Nigeria’s largest crude Qua Iboe was valued at less than dated Brent plus 40 cents from Wednesday, the weakest price assessment since late 2015, Reuters reported. Supply is plentiful, Nigerian exports are set to reach a 17-month high in August, and traders said there are 20 cargoes for loading in July and another 10 for June loading still available, the report added.

    Records showed that Brent price was $46.91 per barrel on Monday, on Tuesday it dropped to $46.02 and to $44.82 on Wednesday but yesterday it went up $45.14 per barrel after slumping to 10-month lows on concerns of a glut in the market. However, concerns about the outlook remain and they weighed on a number of oil stocks across the world.

    The global oversupply theme has been driving the market lower, despite the OPEC and non-OPEC supply cut to boost price. OPEC and non-OPEC countries had agreement to curb supply by 1.8 million bpd by a further nine months after its recent meeting in Vienna but rising supply in the U.S., Nigeria and Libya, in addition to signs of demand decline in Asia, which is the biggest oil-consuming region in the world, have been weighing on crude prices.

  • 60 cargoes of Nigeria’s crude unsold

    Oversupply has continued to weigh on different West African grades of crude oil with little fresh trading, it was learnt.

    Many buyers, according to report, expected differentials to soften further as pending tenders hindered new deals.

    According to Reuters, there were some 60 unsold cargoes of Nigerian crude, including 20 from the June loading plan.  The July Forcados export plan has not been issued, meaning there were between six and eight additional cargoes that would likely come into the market.

    The report noted that traders said Forcados would likely sell initially at a discount to dated Brent until it proved its reliability. Shell just lifted force majeure declared on the Forcados crude grade after more than a year.

    Oil prices hovered close to one-month lows after unexpected surge in U.S. inventories and the return of Nigerian Forcados crude aggravated investor concerns about an already oversupplied market.

    China’s crude oil imports rebounded to the second highest on record in May, making China the world’s top buyer for the month amid concerns over tightening crude supply to Asia and an extension of producer cuts to March next year.

  • Nigeria’s crude hit by oversupply

    Nigerian crude differentials remained under downward pressure yesterday from ample supplies.

    According to Reuters, a number of pending Asian buying tenders was keeping a lid on activity in the Nigerian market, traders said.

    Supply is plentiful as a number of cargoes are still available for June loading in addition to July volumes. Much of the July programme for Qua Iboe – often one of the first grades to be sold out – is still available, a trader told Reuters.

    Differentials for most grades were struggling, a trader said. The return of a normal export programme of Forcados in June – scheduled at seven cargoes – has added downward pressure on the market.

    However, offer levels for Angolan cargoes were steady. About 12-13 cargoes for July loading were still available, a trader said, steady from Monday’s estimate.

    Angola’s national oil firm, Sonangol, was heard to be still offering a Dalia cargo (Angolan crude grade) loading on July 29-30 at dated Brent minus $1.10, versus sold prices one trader said are closer to dated minus $1.50.

    Girassol was heard to be on offer at dated Brent plus 30 cents, a level one trader thought was ambitious.

    Indonesia’s Pertamina is running a tender to buy August-loading crude, which closes on today.

    The result of Indian Oil Corporation’s latest tender that could take West African crude is expected today.  Another Indian refiner, MRPL, is looking to buy a cargo of sweet crude loading on July 6-20. This tender closes next week, a trader said.

  • ‘Oil subsidy scammers nurturing vandalism, militancy, crude oil theft’

    The oil subsidy scammers, who benefitted immensely from fake importation of petroleum products are nurturing vandalism,  militancy, crude oil theft and the unwarranted disruptions in the sector, to the level being witnessed, especially in the Niger Delta.

    The disclosure was made yesterday in Port Harcourt, the Rivers State capital, by the Convener of the Second Edition of the Save Nigeria Oil and Gas Industry (SNOAGI) Roundtable, Dr. Brown Ogbeifun.

    The roundtable was organised by the African Initiative for Transparency, Accountability and Responsible Leadership (AFRITAL).

    Project SNOAGI was launched last year, as a veritable platform for bringing stakeholders together to interact, brainstorm and make prescriptions on how to improve the efficiency of the oil and gas operations, thereby assisting government in bringing sanity to the sector.

    Ogbeifun said: “Most of the motherless US Dollars,  British Pounds, Euro and Naira found in wardrobes, farms and soak-away pits are definitely primary or secondary products of mismanaged oil funds, which might explain why the oil industry has witnessed gross underdevelopment.

    “The revelations emanating from the Malabu oil deal, the brazen cash withdrawals from oil money accounts to pursue non-value addition to the good of our hydrocarbon development are indeed very sad.

    “There is no doubt that there has been lack of investors’ confidence in the oil industry, as policies and laws that would have protected their investments are not seriously addressed.

    “The issues of over regulation through multiple regulatory agencies, multiple taxation, global and local oil politics have made it an intractable possibility for Nigeria to reach it’s optimum productivity.”

    The convener also stated that Nigeria was ripe enough to be self sufficient in producing all the necessary derivatives from crude oil.

    Ogbeifun noted that compounding the parlous state of the oil and gas sector came the sabotaging of the pipelines by the militants, which he insisted almost crippled operations in the sector.

    He said: “Paradoxically, we export our crude oil and create refining capacities for other economies, at the detriment of the Nigerian state. Why must we continue to export our mineral resources in exchange for finished products in the oil and gas industry?

    “Our leaders have consistently displayed lack of political will to drive the transformation imperatives to a logical conclusion. That is why we are still talking of the Petroleum Industry Bill (PIB), 17 years after it started its journey.

    “No country treats its critical reforms the way we do. Not passing the PIB has led to losses in trillions of naira, loss of investment opportunities, inability to realise our optimum capacity utilisation and the inability to end gas flaring, which was to have ended in 2008.

    “The PIB might not be a perfect document, just as it is all over the world. All we need is an enduring dialogue process and the will of steel by government to drive the process to its logical conclusion. No matter the drawbacks, the PIB contains many sections that would have greatly enhanced the hydrocarbon potential of Nigeria.”

    The convener also stated that mediation was very effective in the resolution of knotty conflicts, while pleading that the ongoing dialogue process between top officials of the Federal Government and Niger Delta militants/leaders should be sustained.

    He noted that while government was seeking solutions to all the challenges in the Niger Delta, all parties should sheathe their swords,  show good faith and respect for one another, declaring that no meaningful development would take place in an atmosphere of chaos and anarchy.

    Ogbeifun added that the pronouncements of the Federal Government’s top officials on the setting up of modular refineries in the Niger Delta and the open confession that the crude oil and gas-rich region deserved a better deal, showed that there were still honourable men in the corridors of power in Nigeria.

  • $17bn stolen crude: Issues before House committee’s probe panel

    $17bn stolen crude: Issues before House committee’s probe panel

    It smacks on the impossible: The House of Representatives has set up an ad hoc committee to probe revenue losses in crude oil and gas sales. The House even gave a time span: 2011 to 2014. And who is saddled with this seemingly herculean task? It’s Abdulrasak Namdas, the Chairman, House Committee on Media and Public Affairs. He is the one chairing the Ad Hoc committee meant to unravel what only men with links to the fourth dimension can probably accomplish. And without wasting much time, the lawmaker swung into action, inviting all concerned stakeholders. The media was always fully represented at the hearings, after all, by virtue of his position as the spokesman of the House, he is in their constituency. Now, the issue of who carted away what is being investigated, but the most important issue is not starting the journey but completing it. Many are wont to wager that strategic land mines will be strewn along the part of the committee with intent to derail, mislead, delay or totally destroy its mandate. It has happened before, and may likely happen again. It will be a surprise if the committee members had not considered that. Essentially, the purpose of the investigation is to unearth who benefitted from undeclared crude oil and liquefied natural gas exports from 2011-2014 estimated at $17 billion. There had been tales of collusion by government agencies and many had posited that it would take patience, perseverance, long-suffering, prayers and possibly fasting, all rolled into one, to come up with anything meaningful from the whole exercise. Already, Namdas is screaming himself hoarse that government agencies are scuttling the $17bn stolen crude/gas exports probe. Are Nigerians listening? At the last session of the committee, those invited that did not appear included the Nigerian National Petroleum Corporation NNPC, Nigerian Maritime Administration and Safety Agency NIMASA, Nigeria Customs Service, Nigerian Navy, Nigerian Ports Authority. Others were the National Petroleum Investment Management Services NAPIMS, Accountant General of the Federation, Nigerian Extractive Industries Transparency Initiative (NEITI), the Attorney General of the Federation and Minister of Justice and the Economic and Financial Crimes Commission (EFCC).

    Recall that this is not the first time such probe is being done. Let’s rewind to 11th of December, 2013 in Conference Room 028. Seated before reporters was the Chairman of the ad hoc Committee probing Oil theft and pipeline vandalism in the Niger Delta; his name is Hon. Bashir Adamu. The mandate of his committee at that time included ” to determine how deep pipelines are buried and if they are accessible to oil thieves; determine how stolen crude oil is transported; identify the owners of illegal vessels; ascertain the status of impounded vessels and recommend the confiscation of vessels used for illegal bunkering; determine the roles of various organization’s tackling illegal bunkering; determine the countries aiding and abetting the crude oil criminals” and finally, “recommend preventive measures and lasting solutions to the menace.”

    Bashir Adamu’s briefing began at 11: 18 am that day and lasted for exactly six minutes. And for the benefit of Hon. Namdas, I will like to reproduce a sizeable portion of that briefing:

    Adamu said: “illegal oil bunkering is a specialized and mechanized crime issue and several attempts have been made by the federal government to tackle the challenge to no avail. The level of oil theft is alarming and of great concern to stakeholders. The oil and gas industry account for about two- third of government revenue and more than 90 percent of export earnings in Nigeria. Illegal bunkering has caused Nigeria to lose an estimated $5 billion, about N780 billion annually amounting to about $400 billion since independence.

    “Statistics show that about 350,000 barrels per day was lost to illegal bunkering in 2012, representing an increase of about 20 percent over the figures of 2011 and 67 percent over that of 2010, while the trend of 2013 is even more alarming. Unless the government summons the will to fight the menace, the situation will further worsen the country’s economic woes.

    “The rising level of crude oil theft and pipeline vandalization, particularly in the Niger Delta region has reached high dimension. The ugly development has made the operators in the Nigerian oil and gas industry one of the most expensive in the world.

    “In April 2013, oil giant, Shell Petroleum Development Company, shut down the 150,000 Nembe crude oil pipeline due to urgent need to clear away illegal connections.”

    The lawmaker said the ugly phenomenon of oil theft and its global support system has continued to be a clog in the wheels of the nation’s high economic growth trajectory. “Government should beam its searchlight on all security agencies in the country in a bid to fish out those who perpetuate this illicit trade,” Adamu said.

    The adhoc committee in the 7th House, according to Adamu intended to have a 5- day public hearing. It didn’t hold. “At the end of the hearing, the committee hopes to put in place a legislation that will ensure improved monitoring of onshore and offshore areas in order to discourage vandalism and oil theft in the nation and propose adequate prosecution of criminals,” the ad hoc committee chairman said. That also did not happen. Suffice to say that the six minutes briefing of 11th December, 2013 in Conference Room 028 was the only activity carried out by the committee known to House of Representatives Press Corps till this day.

    Back to the present: Recall that the resolution of the Green Chamber on the $17 billion probe was sequel to the adoption of a motion sponsored by Johnson Agbonayinma and titled “Urgent Need to Investigate over $17 billion Stolen from Undeclared Crude Oil and Liquefied Natural Gas Exports to Global Destinations.” The House thereafter set up an adhoc committee to investigate 20 companies, two law firms, two Federal Government agencies, and a technical consultant contracted by the Jonathan administration amongst other mandates.

    Agbonayinma said the establishments were identified by Molecular Power System Limited in a report on shipment of oil and gas exports from 2011-2014. He expressed the need for a thorough investigation adding that the report based on data from the Nigeria National Petroleum Company (NNPC) and figures from pre-shipment inspection reports from the Central Bank of Nigeria (CBN) indicates undeclared crude oil export shortfalls translating to $12 billion, $3 billion and over $800 million to the US, China and Norway respectively. According to the lawmaker, the report showed a $461 million shortfall from a total of 727, 460 metric ton export of natural liquefied gas from Nigeria to seven countries.

    Well, everyone is waiting to see how this investigation goes down. Namdas has everyone’s goodwill and prayers, we hope that will suffice.

    Even the Speaker of the House of Representatives, Yakubu Dogara, while speaking at the opening of the Namdas hearing said the $40.266 billion and N196.3 billion revenue loss in the Nigeria’s oil and gas industry over the past few years was worrisome. According to him, the Green Chamber will leave no stone unturned in its effort to tackle corruption in the oil and gas sector.

    Now that the 4- day investigative hearing is over, Nigerians are salivating to see the profound revelations that may be served in the Namdas committee’s report. For sure, this won’t be another exercise in futility.

  • 128 firms jostle for NNPC’s crude, products swap

    •Oando, Asap, Delsama, MRS, others on the list

    The Nigerian National Petroleum Corporation (NNPC) yesterday opened bids from 128 firms that jostled for this year’s  crude/product swap otherwise known as Direct Sale Direct Purchase (DSDP).

    The bids of MRS Oil, Sahara Energy Petroleum Ltd, Oando, Asap and Delsama and others were part of the bids opened as at press time yesterday.

    The exercise, according to its Group Managing Director (GMD), Maikanti Baru, who declared the bids opened in Abuja, would involve a maximum of 800,000 barrel per day (bpd).

    “The crude involved in this year’s DSDP is about 800,000 barrel at most,” he said.

    He said the primary consideration of the bid was to ensure that Nigerians are not left out of the exercise so long as  they form a consortium or made single entities but they must have physical presence in the country.

    He said: “The major drive here is to ensure that Nigerians are not left out. And we make sure by ensuring that those that emerge whether it is consortium or single must have physical presence in Nigeria.

    “That means that they must have some depots or retail outlets as a minimum or they must be involved with exploration and production of crude oil. So we ensure that most of the proceeds are domesticated in Nigeria.”

    He said the DSDP has since its inception helped greatly in the stabilisation of product supply to the nation.

    Analysing the benefits that the NNPC has recorded from the operation of the crude/products swap, he said the corporation has saved Nigeria $500million by cutting payments and cost of demurrage.

    According to him, the programme has ensured that products supply from the refineries  are augmented to meet national supply for the sustenance of 30 days sufficiency, especially in the case of petrol.

    “The DSDP is a major component of our petroleum product supply portfolio and since its inception, it has helped greatly in the stabilisation of product supply to the nation. The DSDP programme has also recorded significant cost savings of over half a billion dollars through major reduction in the amount we pay for both demurrage and the products themselves . It ensures that the supply from the refineries are fully augmented to meet the national supply as well as a sustained over 30 days sufficiency particularly for petrol,” Baru said.

    He said NNPC has been able to play its role by living up to its obligation as a supplier of last resort whenever the marketers fail to make their supply margin due to prices.

    Baru added that the DSDP has assisted the oil firm to intervene in the supply of deregulated products, especially Aviation Turbine Kerosene (ATK) for which there was anticipated scarcity. NNPC brought cargoes steadily on weekly basis to ensure that there was 30 -day sufficiency.

    The GMD recalled that the corporation got the nation wet despite the propaganda that there was shortage of aviation fuel, adding that the cause of the shortage was that the operators could not pay for tits cost.

    “The programme is very transparent and the major instrument for the partnership between NNPC and products suppliers both local and international. We have, as part of this programme, been able to live to our obligation as a supplier of last resort when products are not being supplied by the marketers on the basis of prices that will not give them sufficient margin,” he said.

    He noted that the corporation used DSDP to intervene in the area of making sufficient supply of diesel to the market.

    According to him, the programme has led to steady delivery of cargoes of diesel into the country on every four days basis.

    Speaking, the Group General Manager, Crude Oil Marketing, Mele Kyria said one basic concern of the DSDP was the availability of products .

    He explained that Nigeria is selling its crude in exchange for products but for equivalent of higher of value through the programme.

    He said  in the last one year, the process has ensured that the products that NNPC received has been of higher value than the value of crude it has given out.

  • Crude price drops at international market – OPEC

    Crude price drops at international market – OPEC

    The Organisation of the Petroleum Exporting Countries (OPEC) on Tuesday announced a drop in price of crude from 52.64 dollars to 52.17.

    The report on the organisation’s website did not give reasons for the difference of 0.47 dollars drop.

    “The price of OPEC basket of 13 crudes stood at $52.17 a barrel on Monday compared with $52.64 the previous Friday, according to OPEC secretariat calculations,’’ it said.

    The 13 OPEC Reference Basket of Crudes is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Rabi Light (Gabon) and Iran Heavy (Islamic Republic of Iran).

    Others are Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela). (NAN)

  • NNPC makes $105.74m from crude sale in October

    NNPC makes $105.74m from crude sale in October

    The Nigerian National Petroleum Corporation (NNPC) , at the weekend, said it recorded a total crude oil sale of $105.74 million in October this year – $25.76 million lower than the preceding month’s performance.

    Its monthly financial and operations reports for October stated: “A total export sale of $105.74 million was recorded in October, 2016. This is $25.76 million lower than the preceding month’s performance. Crude oil export sales contributed $21.40 million (or 20.24 per cent) of the dollar transactions compared with $86.80 contribution in the previous month.

    “Also, the export gas sales amounted to $84.34 million in the month. Twelve month Crude Oil and Gas transactions indicate that Crude Oil & Gas worth $2,768.73 million was exported.”

    The report, however, added that total export proceeds of $97.29 million were recorded in October 2016 as receipt against $115.57 million in September.

    In the month under review, NNPC said contribution from crude oil amounted to $18.90 million after adjusting $2.50 million lifting deposit utilised earlier.

    The report explained: “Gas & other proceeds was $78.39 million. The total receipt of $97.29 million remitted to fund the JV Cash Call for the month of October 2016 to guarantee current and future production.”

    It attributed the poor performance to attack and sabotage of oil facilities in the Niger Delta.

    NNPC explained that at Forcados Terminal alone, about 300,000 bpd were shut in since February, following force majeure declared by Shell Petroleum Development Company (SPDC).

    The report noted that a number of  crude oil liftings were deferred until the repair is completed.

    Other major terminals affected by the renewed spate of vandalism are: Bonny, Usan, Que Ibo terminals and the attack on the Nembe Creek Trunk Line (NCTL).

    According to the corporation, “Total export crude oil & gas receipt for the period of November 2015 to October, 2016 stood at $2.66 billion. Out of which the sum of $2.59 billion was transferred to JV Cash Call in line with 2015/2016 Approved Budget and the balance of $0.073 billion was paid to the Federation Account.

    “However, this amount falls short of the calendarised appropriated amount of $615.80million and $712.46million for 2015 and 2016 respectively. This is due to worsening production and fall in crude oil price.”

    In terms of Naira payment to Federation Account, the report explained that Domestic Crude Oil and Gas receipt during the month amounted to N104.68 billion, consisting of N3.24 billion from Domestic Gas and the sum of N101.44 billion from Domestic Crude Oil.

    It explained that of the N101.44 billion receipt from crude oil, N59.50 billion (US$302.03 million) was transferred to Joint Venture Cash Call (JVCC) being a first line charge and to guarantee continuous flow of revenue stream to Federation Account.

  • Crude importation from Niger?

    SIR: There is no doubt the President Muhammadu Buhari (PMB) led administration is on a uphill mission against militants who are taking down oil installations in the oil rich South-south. With the global oil price crash, glut, escalating dollar strength against the naira and yawning reality of plundered economy, PMB and his lieutenants in the business of managing a challenged should attract pity. Sadly, some decisions taken by these lieutenants are puerile and without direction.

    One of them is the planned construction of 1000km pipeline from Agadem in Niger Republic to Kaduna refinery.

    Hear Ndu Nghamaduon, Group General Manager, Public Affairs Division NNPC: “Due to challenges with the aged refinery and crude oil pipelines that had been breached severally, the operations of the refinery have been epileptic. This, we are determined to resolve through various intervention methods including evaluation of alternative crude oil supply from Niger Republic through building of a pipelines of over 1, 000 kilometres from Agadem to Kaduna.”

    The wisdom behind connecting crude from Niger Republic is still fussy and for now makes no sense to me. Let’s assume government is going to trade refined petroleum products for their crude and no cash exchange involved, how long will that kind of agreement last? Has anyone thought of the amount of money the project will gulp in this hard time or what that kind of money will do in strengthening the oil sector?

    If vandalization and age-induced rot has affected the pipelines carrying crude form Escravos- Warri to Kaduna, wouldn’t it be cheaper to fix the pipelines, get security operatives, acquire surveillance drones to secure a hitch free flow of crude in terms of retaining national asset, product ownership than the planned perpetual importation? I am very sure other pipeline routes across the country are in need of repairs, is Federal Government going to construct new lines from contiguous countries producing crude?

    About the continuous bombing of oil installations in the Niger Delta, I have opined on several occasions that it is the hand work of past corrupt Nigerians either to distract the present administration or force them to abandon the on-going fight against corruption. My take however is that it is time for government to scale up non-violent actions to end the impasse.

    We must wake up to the realization that even the good intentions of PMB alone cannot take Nigeria anywhere except with the cooperation of people with right thinking mental process to galvanize the economy. We must also realize that continuous hailing under our evolving circumstance can never has never helped any government. It is indeed time to offer patriotic criticism.

    We must think properly to get the ship of nation out of the present economic Tsunami. Already we are on economic ring of fire where all manner of disasters keep bashing the already battered economy of a country well-endowed with human and natural resources. We must wear our thinking cap to realize that whatever plans with Niger Republic on the crude export can never be like maintaining our own oil installations/facilities.

     

    • Israel A. Ebije

    ebijeo5@gmail.com

  • NNPC: 224 firms bid to buy crude

    NNPC: 224 firms bid to buy crude

    • Europe, India, China still buy 

    A total of 224 companies yesterday bided to buy Nigerian crude through the 2016/2017 Nigerian National Petroleum Corporation (NNPC) Crude Term Contract.

    Speaking with reporters at the bid opening in Abuja, the Group Managing Director, Dr. Maikanti Baru, said the number of companies that will emerge from the bidding will be a factor of actual production focus in February next year.

    He said: “The companies to emerge from the bid would be decided on actual production focus around February when the tenders are supposed to come in,” adding that the state-run oil firm selected about 37 companies from its bidding exercise last year.

    Baru however pointed out that the volume that the Federal Government would be offering for sale from the transaction will be about 600,000 barrel per day (bpd) from the Joint Venture operations.

    He added that 100,000 bpd would also be available from the transaction through royalties and taxes accruing from Production Sharing Contract (PSC).

    Baru said: “It is the volume that we get our JV operations that is about 600,000 barrels per day when you have full operations. We also have somewhere in the region of 100,000 barrel per day in terms of royalties and  tax that is accruing from the PSC operations. So these are the kinds of volumes we are expecting for next  year.”

    He said NNPC was looking forward to refiners,  gigantic traders and companies that have invested tremendously in the downstream oil sector.

    “We are targeting refiners and also big traders as well as companies that have made substantial investments in the oil and gas industry, particularly, downstream in Nigeria,” Baru said.

    He said it was untrue, rumours that the government was finding it difficult to get buyers for the nation’s crude, noting that Nigeria’s crude is hot cake, adding that it is very valuable because of its light nature and also yields several by products.

    Baru said contrary to the common opinion that the crude goes only to China, it goes to India and most European countries.

    The GMD said: “There is that speculation that we are suffering for markets. It is not quite true. Nigerians crude  has continued to earn premiums and they are hot cakes all over for refiners because of the light nature of the crude; it gives very high yields on the valuable products that are produced  from crude oil.

    “Nigerian crude continues to maintain the market. In fact, contrary to a lot of speculations that a lot of Nigerian crudes go to China, no, they don’t. Most of them are consumed in India and Europe, particularly this year and last year, most of Nigerian crudes end in European countries.”

    According to him, the ceremony marked the opening of the 2016/2017 bid tender for Nigerian crude under the NNPC on behalf of government for the people of Nigeria.

    He said the corporation is not signatory to the account of the proceeds but only plays the role of confirming the payment for the crude.

    He added that the proceeds from sale of crude goes directly to the Federation Account in the Central Bank of Nigeria (CBN).