A not-for-profit organisation, Africa Network for Environment and Economic Justice (ANEEJ), says the crude oil agreement between the Nigerian National Petroleum Corporation, NNPC, and four companies is not transparent. It adds that the agreement does not conform with the Nigeria Extractive Industries Transparency Initiative (NEITI) Act of 2007. The NNPC announced the deal involving four of its joint venture partners. But ANEEJ in its statement on Thursday faulted the deal, stating that it was not “open and competitive and did not also take into account Civil Society Observation as espoused in NEITI Act and other statutes”. ANEEJ Executive Director, Rev. David Ugolor, said “We are further alarmed that the same Geneva companies Trafigura and Vitol reported in the Bern Declaration Report of 2013 to have outclassed their competitors in opaque partnerships with the NNPC are the same companies that have been contracted by the NNPC for further oil swaps.
“The Bern Declaration (BD) which was being investigated by the 7th National Assemblyreports of instances which show that sales between the NNPC and the two Swiss partners were carried out at prices lower than the market rates which some persons behind the scene were reaping from. They were carried out in frequent
“The best measures to optimize the marketing of Nigeria’s crude oil and secure new market potentials is not to embark on oil swap deals but to ensure local refining of the crude and market the refined products both locally and internationally. We are happy that our refineries are working again, but they, including the new licensees need to work optimally to meet both domestic and international market needs,” Ugolor stated.