Oil traders mull NNPC’s proposal to prolong fuels swap arrangement

At least five oil consortiums said they were considering a proposal from the state-run Nigeria National Petroleum Corp. to prolong a crude-for-fuels swap program until the middle of next year.

Extending the swap would allow the West African country to ensure a vital, steady inflow of products like gasoline and diesel since the program accounts for more than half the nation’s imports. The consortiums have yet to agree the terms NNPC offered.

The swap contracts, known as Direct Sale Direct Purchase, started in July 2017 and were originally meant to last a year. Calls to NNPC officials in Abuja were not immediately answered.

Source: Bloomberg

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