• 2 days Iraq Begins To Rebuild Largest Refinery
  • 3 days Canadian Producers Struggle To Find Transport Oil Cargo
  • 3 days Venezuela’s PDVSA Makes $539M Interest Payments On Bonds
  • 3 days China's CNPC Considers Taking Over South Pars Gas Field
  • 3 days BP To Invest $200 Million In Solar
  • 3 days Tesla Opens New Showroom In NYC
  • 3 days Petrobras CEO Hints At New Partner In Oil-Rich Campos Basin
  • 3 days Venezuela Sells Oil Refinery Stake To Cuba
  • 3 days Tesla Is “Headed For A Brick Wall”
  • 3 days Norwegian Pension Fund Set to Divest From Oil Sands and Coal Ventures
  • 4 days IEA: “2018 Might Not Be Quite So Happy For OPEC Producers”
  • 4 days Goldman Bullish On Oil Markets
  • 4 days OPEC Member Nigeria To Issue Africa’s First Sovereign Green Bond
  • 4 days Nigeria To Spend $1B Of Oil Money Fighting Boko Haram
  • 4 days Syria Aims To Begin Offshore Gas Exploration In 2019
  • 4 days Australian Watchdog Blocks BP Fuel Station Acquisition
  • 4 days Colombia Boosts Oil & Gas Investment
  • 4 days Environmentalists Rev Up Anti-Keystone XL Angst Amongst Landowners
  • 5 days Venezuelan Default Swap Bonds At 19.25 Cents On The Dollar
  • 5 days Aramco On The Hunt For IPO Global Coordinators
  • 5 days ADNOC Distribution Jumps 16% At Market Debut In UAE
  • 5 days India Feels the Pinch As Oil Prices Rise
  • 5 days Aramco Announces $40 Billion Investment Program
  • 5 days Top Insurer Axa To Exit Oil Sands
  • 6 days API Reports Huge Crude Draw
  • 6 days Venezuela “Can’t Even Write A Check For $21.5M Dollars.”
  • 6 days EIA Lowers 2018 Oil Demand Growth Estimates By 40,000 Bpd
  • 6 days Trump Set To Open Atlantic Coast To Oil, Gas Drilling
  • 6 days Norway’s Oil And Gas Investment To Drop For Fourth Consecutive Year
  • 6 days Saudis Plan To Hike Gasoline Prices By 80% In January
  • 6 days Exxon To Start Reporting On Climate Change Effect
  • 6 days US Geological Survey To Reevaluate Bakken Oil Reserves
  • 7 days Brazil Cuts Local Content Requirements to Attract Oil Investors
  • 7 days Forties Pipeline Could Remain Shuttered For Weeks
  • 7 days Desjardins Ends Energy Loan Moratorium
  • 7 days ADNOC Distribution IPO Valuation Could Be Lesson For Aramco
  • 7 days Russia May Turn To Cryptocurrencies For Oil Trade
  • 7 days Iraq-Iran Oil Swap Deal To Run For 1 Year
  • 9 days Venezuelan Crude Exports To U.S. Fall To 15-year Lows
  • 9 days Mexico Blames Brazil For Failing Auction

Breaking News:

Iraq Begins To Rebuild Largest Refinery

Canadian Oil Prices Plunge To $30

Canadian Oil Prices Plunge To $30

Canadian oil is not selling…

How Cryptocurrencies Are Reshaping The Oil Trade

How Cryptocurrencies Are Reshaping The Oil Trade

Last week, Venezuela announced it…

Nigerian NNPC Seeks Up To $5B Cash-for-Oil Deals With Traders

oil tanker

The Nigerian National Petroleum Corporation (NNPC) is aiming to strike up to US$5 billion worth of cash-for-crude prepayment deals with some of the biggest global oil traders, in a bid to raise funds for oil and gas exploration and production projects, Reuters reported on Wednesday, citing sources with direct knowledge of the talks.

According to Reuters’ sources, NNPC has hired Standard Chartered as advisor to the deals, and several weeks ago a request for proposals was issued seeking a loan of between US$3.5 billion and US$5 billion that would be repaid in crude oil over five to seven years.

NNPC and the parties involved in the deals are expected to make a decision on the cash-for-oil prepayment by the end of 2017. Seven commodity traders—including the industry’s biggest Vitol, Glencore, and Trafigura—are still in the race to get the deals.

According to one of Reuters’ sources, Nigeria—currently exempt from the OPEC cuts—is looking to strike deals with three firms to lift oil in exchange for 70,000 bpd of crude oil.

Last year, Vitol expanded its presence in Nigeria, by acquiring a stake in the downstream operations of local energy group Oando. In addition, Vitol, alongside Trafigura, is among the major commodity traders that are working with Nigeria under a crude-for-refined-products swap deal.

Nigeria’s economy—highly dependent on oil revenues—suffered a blow when oil prices collapsed in 2014. On top of that, militant attacks on oil infrastructure crippled its production last year to the point of Nigeria easily winning exemption from OPEC’s production cuts. State firm NNPC has been lagging behind payments for its interests in joint ventures with the oil majors operating in Nigeria—Shell, Total, Eni, Chevron, and ExxonMobil.

In December last year, Nigeria signed a deal to repay US$5.1 billion worth of dues to the five supermajors over five years. The oil majors had lowered the original amount Nigeria owed by US$1.7 billion, from US$6.8 billion, Oil Minister Emmanuel Ibe Kachikwu said at the time.

By Tsvetana Paraskova for 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