• 23 hours Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 3 days Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 10 hours Clean Energy Is Canceling Gas Plants
  • 13 hours GAME CHANGER: MIT Startup Commonwealth Fusion says Commercial Product by early 2030s ! THIS CHANGES EVERYTHING..
  • 16 hours America's Frontline Doctors - Safely Start Living Again!
  • 1 day Biden denies fracking ban
  • 1 day "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
  • 11 hours OP article : "Trump blasts Biden Fracking Plan . . . "
  • 9 hours Rethinking election outcomes for oil.
  • 9 hours The Leslie Stahl/60 Minutes Interview with President Trump
  • 12 hours Australia’s Commodities Heartland Set for Major Hydrogen Plant
  • 21 hours Is the coal industry on the way out?
  • 2 days Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
Is This Europe’s Newest Oil & Gas Hotspot?

Is This Europe’s Newest Oil & Gas Hotspot?

Malta’s undrilled offshore oil and…

Nigeria Reveals Details Of $20 Billion Dollar Oil Swap Corruption

A Nigerian parliamentary committee has announced major anti-corruption findings in relation to a multi-billion-dollar crude oil swaps program with foreign companies.

The ad-hoc committee revealed that there were no formal contracts between the Nigerian National Petroleum Corporation (NNPC) and trading companies that received $24 billion worth of Nigerian crude oil between 2011 and 2014.

According to the results of the investigation, the former minister of petroleum resources, Diezani Alison-Madueke, illegally allowed for a swap of Nigerian crude oil for refined products to trading firms Duke Oil and Trafigura.

Related: The Biggest Natural Gas Discovery Of 2016 Just Got Bigger

In 2010, the NNPC began taking 445,000 barrels of crude daily for refining in a bid to meet the country’s local demand of petroleum products. When the refineries failed to meet this commitment, the NNPC moved to swap the crude for refined products with trading firms.

The official contracts with the two trading firms expired in 2011, according to Nigerian media reports citing the investigation results; however, Alison-Madueke reportedly granted an extension of the contract without the NNPC’s formal signing.

Earlier this month, the government suspended swaps with foreign suppliers. The new policy, Direct-Sale–Direct-Purchase (DSDP), is scheduled to be launched in March.

Related: OPEC Ups Pressure On Iraq, Iran To Freeze Production

President Muhammadu Buhari, who was elected last March, promised the reconstruction of oil industry and investigation into previous government officials suspected of oil embezzlement. Buhari has previously said treasury coffers were virtually empty when he took office in May and that huge sums of money had been stolen.

Africa’s biggest economy faces its worst economic crisis in years, since it relies on oil exports for about 58 percent of government revenue. In the oil sector alone, Buhari said $150 billion was believed to have been looted by crooked politicians and that 250,000 barrels of crude oil were stolen in Nigeria each day.

Related: Oil Production Rumor Mill Continues To Turn As Iran Hints At Freeze

Buhari has already split the state-owned NNPC oil company into two entities in a bid to tackle corruption.

Alison-Madueke was arrested in October in London on the request of Nigerian authorities who alleged that $20 billion in oil money had gone missing under her watch. Several other officials under former president Goodluck Jonathan are also being investigated by the authorities.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News