Group Says NNPC Crude Oil Swap Lacks Transparency

NNPCA 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  operations that  appeared incongruous and shrouded in  opacity   that  involves  subsidiaries domiciled in tax  heavens." Ugolor said. "We observe that the interim crude swap agreement is in sharp contrast with the agenda of President Muhammadu Buhari determination to rid the nation's Oil and Gas industry and indeed all sectors of corruption responsible for the hemorrhaging of the nation into frightening poverty. The organisation said it "wants the NNPC to take steps to end oil swaps in the country. Pruning them to 16 is a welcome development, but we want an end to oil swaps in Nigeria because it is the hot bed for oil theft and bleeding of the economy". 

"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.



Latest in this Category