Abuja - President Muhammadu Buhari has cancelled all offshore processing and crude swap deals for refined oil products between the Nigerian National Petroleum Corporation (NNPC) and oil traders, reports Premium Times.
The cancellation affected contracts for more than half of the 44 5000 barrels per day of crude normally allocated for domestic refining usually used under the products swaps deals.
The cancellation is to enable government review and re-evaluate the contracts in a way that would help restructure the terms to be more favourable to Nigerians.
Also read: Nigeria starts investigating crude oil swap contracts
The deals, initiated in January by former President Goodluck Jonathan, were designed to supply petroleum products for crude oil refining to cushion the negative impact of continued reliance on imports domestic consumption.
It would be recalled that the Ahmed Joda-led Presidential Transition Committee had recommended to the Buhari administration to carry out a comprehensive audit of all Offshore Processing Agreements, OPAs, and Crude Oil Swap deals entered by the NNPC.
Read more at Premium Times.
- News 24