The Africa Network for Environment and Economic Justice (ANEEJ), a Non-Governmental Organisation working on Oil and Gas issues has faulted\u00a0 the\u00a0 interim crude swap contract entered into with four companies by the Nigeria National Petroleum Corporation (NNPC) expected to last from October to December 2015.<\/p>\n
According to ANEEJ, the process of engaging the companies falls short of the Provisions of the Nigeria Extractive Industries Transparency Initiative (NEITI) Act 2007.<\/p>\n
Reports say two of the agreements are with NNPC Joint-Venture companies \u2014 one with Swiss trader Vitol called Calson and the other with commodities trader, Trafigura called Napoil. The other two are with non-incorporated Joint Ventures between oil major BP and Nigermed Limited and NNPC\u2019s trading arm Duke Oil Company with Sahara Group.<\/p>\n
\u201cNigerians suddenly woke up to the news of engagement of the four companies by the NNPC. The process of engaging the four companies was not open and competitive and did not also take into account Civil Society Observation as espoused in NEITI Act and other statutes which wereenacted to mainstream transparency and accountability into Nigeria\u2019s extractive industries.\u201d says Executive Director of ANEEJ, Rev. David Ugolor.<\/p>\n
\u201cWe are further alarmed that\u00a0 the\u00a0 same Geneva companies Trafigura and Vitol\u00a0 reported in the Bern Declaration Report of 2013 to have outclassed\u00a0 their competitors in\u00a0 opaque partnerships with the NNPC are the same companies that have been contracted by the NNPC for further oil swaps.<\/p>\n
\u201cThe Bern Declaration (BD) which was being investigated by the 7th National Assemblyreports of instances which\u00a0 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\u00a0 operations that\u00a0 appeared incongruous and shrouded in\u00a0 opacity\u00a0\u00a0 that\u00a0 involves\u00a0 subsidiaries domiciled in tax\u00a0 heavens.\u201d Ugolor said.<\/p>\n
\u201cWe observe that the interim crude swap agreement is in sharp contrast with the agenda of President Muhammadu Buhari determination to rid the nation\u2019s Oil and Gas industry and indeed all sectors of corruption responsible for the hemorrhaging of the nation into frightening poverty,\u201d the ANEEJ helmsman said.<\/p>\n
The NNPC had stated that only 16 firms would be engaged to serve as off-takers? for the 2015\/2016 crude oil term contract? from the current 43. According to the NNPC, the decision to prune the number of off-takers was borne out of the need to instill transparency and probity in the award of the annual Crude Oil Term Contract, but ANEEJ said it \u201cwants 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.<\/p>\n
\u201cThe best measures to optimize the marketing of Nigeria\u2019s 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\u00a0 need to work optimally to meet both domestic\u00a0 and international market needs,\u201d Ugolor stated.<\/p>\n
Frontier Newspaper<\/p>\n","protected":false},"excerpt":{"rendered":"
The Africa Network for Environment and Economic Justice (ANEEJ), a Non-Governmental Organisation working on Oil and Gas issues has faulted\u00a0 the\u00a0 interim crude swap contract entered into with four companies…<\/p>\n","protected":false},"author":1,"featured_media":41871,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-41870","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-exclusive"],"yoast_head":"\n