Minister, Reps disagree over NNPC crude swap deals

ayodele johnson

February 3, 2016 4:41 AM

The DSDP option eliminates all the cost elements of middlemen and gives the NNPC the latitude to take control of the sale and purchase of the crude oil with its partners

NNPC

On Tuesday, the Minister of Petroleum, Dr. Ibe Kachikwu and members of the House of Representatives have fallen out over the controversial crude oil for refined products exchange contracts between the Nigerian National Petroleum Corporation and some trading firms.

The contract is valued at $24bn and meant to run between 2010 and 2014.

The swap deals involved the exchange of crude oil for refined petroleum products in which the corporation gave out part of its 445,000 barrels per day share crude allocation to the trading companies.

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The deal is being reviewed by an adhoc committee headed by an All Progressives Congress lawmaker from Kwara, Mr. Zakari Mohammed.

The current Minister of Petroleum had not resumed his portfolio at the time the degree was awarded.

According to the minister, the DSDP option eliminates all the cost elements of middlemen and gives the NNPC the latitude to take control of the sale and purchase of the crude oil with its partners, adding that the initiative would save $1bn for the Federal Government.

ayodele johnson