The Nigerian National Petroleum Corporation (NNPC) Wednesday unveiled the guidelines for its crude oil-for-product swap programme, known as the Direct Sale and Direct Purchase (DSDP) scheme.
The corporation in a tweet message on its official twitter handle @NNPCgroup, disclosed that it will engage qualified refineries, oil traders, as well as local downstream operators in the 2019 DSDP programme.
NNPC did not state the volume of crude oil it would put into the DSDP programme but usually allocates 445,000 barrels of oil a day from Nigeria’s daily production figures to take care of the country’s daily products consumption. This volume is also often used by it in its crude oil for product swap programmes, including the DSDP.
According to the corporation, the invitation of participants in the swap contract was in line with Nigeria’s public contract and procurement law – the Public Procurement Act 2007, as well as its policy and procedures on same.
It said the decision to engage qualified and credible companies in the DSDP programme was to ensure sustained product supply in the country.
The corporation added that the programme would deliver monthly crude oil lifting on Free on Board (FOB) basis to suppliers who shall in return deliver petroleum products of Nigerian standard specification to it on Delivered at Place (DAP) basis, at designated safe ports in Nigeria.