Energy Briefs
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THE Nigerian National Petroleum Corporation, NNPC, has not imported Dual Purpose Kerosene into the country for three months, according to its latest financial and operations report. The August 2016 edition of the report reveals that the last time the NNPC imported kerosene into Nigeria under the Direct-Sale Direct-Purchase/Offshore Processing Agreement, DSDP/OPA, was in May.
An analysis of the report showed that in the months of June, July and August this year, the NNPC did not get a single litre of DPK under the DSDP/OPA. In February, Ibe Kachikwu, minister of state for petroleum resources, announced the replacement of the crude swap arrangement with what he called the Direct-Sale Direct-Purchase framework, which took off in April.
The DSDP was adopted to replace the crude swap initiative and the offshore processing arrangement in a bid to entrench transparency in the crude oil for product transaction by the country’s national oil firm.
The report showed that by implementing the DSDP, Nigeria was able to save $336.4 million (N102.6 billion at the official exchange rate of N305 to $1) between April and July 2016. However, the corporation showed that while the national oil firm continued the DSDP framework for the importation of Premium Motor Spirit, popularly known as petrol, it discontinued the importation of DPK through the channel.
For June, July and August, the NNPC was supplied 1.18 billion, 798.33 million and 901.35 million litres of PMS, respectively, but it got no single drop of DPK during these months via the DSDP/OPA scheme.
“In August 2016, 901.35 million litres of white products were supplied into the country through the DSDP arrangement, while 798.33 million litres were supplied in the month of July 2016; only PMS (was) supplied through the DSDP in the months of July and August 2016,” the report stated.
— Nov 21, 2016 @ 01:00 GMT
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