(Ecofin Agency) - The Nigerian National Petroleum Corporation (NNPC) has announced that it has received 128 bids from companies interested in swapping processed fuel for 800,000 bpd of unrefined crude this year.

According to Maikanti Baru (photo), the Group Managing Director of NNPC, in exchange for the crude oil, Nigeria will get fuel with a Sulphur content of 50 parts per million (PPM).

Nigeria, in 2016, replaced crude oil swap deals with the direct sale and direct purchase system (DSDP) whereby it will sell crude oil directly to refiners and in exchange for refined oil products, Reuters reports.

“The DSDP has helped us achieve at least $500 million reductions in the amount we pay for demurrage on the supplied products. It also ensures the supply from refineries is augmented to meet national supply demand and also maintain 30 days sufficiency reserve, especially for petrol. The DSDP promotes transparency in the petroleum industry,” Baru added.

Anita Fatunji