NNPC Says Nigeria Saves $500m From Crude Oil Sale, Purchase In 1 Year

Recall that on February, 2016, the Minister of State for Petroleum Resources Dr. Ibe Kachikwu, disclosed that the crude-for-products exchange arrangement popularly referred to as crude swap will be replaced by a Direct-Sale–Direct-Purchase (DSDP) arrangement.

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.

Dr. Maikanti Baru revealed this while Speaking to prospective companies offering to participate in the 2017/2018 session, held at the NNPC Tower, Abuja.

“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 participates 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 must have presences in Nigeria, they most have depots or retail outfits in the country. Otherwise they must be involved in the exploration of crude oil so we ensure that most of the proceeds come to Nigeria,” he said.