Nigeria Saves $500m From Crude Oil Sale, Purchase -NNPC
Barely one year after the introduction of Direct Sale-Direct Purchase (DSDP) strategy for the lifting of crude oil allocated to the Nigerian National Petroleum Corporation (NNPC) instead of crude swap, the nation have saved over $500 million as well as constituent availability of refined products.
The DSDP arrangement which was initiated last year is an arrangement where the NNPC exchange crude oil for finished petroleum products such as premium motor spirit (petrol), Diesel, Kerosene etc.
Speaking at the opening ceremony of bids offers from prospective companies offering to participate in the 2017/2018 session, held at the NNPC Tower in Abuja yesterday, the group managing director of NNPC, Dr. Maikanti Baru revealed that since the inception of the strategy the country has saved over $500 million from demurrage and cost of products.
“Since the inception of the Direct Sale-Direct Purchase arrangement, it has helped a great deal in the stabilization of product supply to the nation. The DSCP programme has also recorded significant savings with over half a billion dollars saved from demurrage and cost of products,” he stated.
Dr. Baru described the DSDP as a major component of the NNPC’s petroleum products supply portfolio, stressing that since inception, it has greatly helped in the stabilization of product supply to the nation.
“The DSDP programme has ensured that the supply from the refineries is fully augmented to meet national supply and sustained over 30 days sufficiency of Premium Motor Spirit, PMS, otherwise known as petrol,” he stated.
According to the GMD, the DSDP programme is designed to ensure the growth of indigenous companies as participate are expected to have strong representation in the country.
“The major drive here is to make sure that Nigerians are properly represented, those who emerge as winners most have presences in Nigeria, they most have depots or retail outfits in the country. Otherwise they must be involved the exploration of crude oil so we ensure that most of the proceeds come to Nigeria.
