The Managementof the Nigerian National Petroleum Corporation, NNPC, over the weekend denounced a recent report by a Swiss-based, Non-Governmental Organisation, NGO (The Berne Declaration), which accused the Corporation of collusion with some local and international oil traders to execute unfair industry practices.
The Acting Group General Manager, Group Public Affairs Division, NNPC, Ms. Tumini Green, said in a statement on Sunday that the publication is notonlybogus but strewn with inaccurate and poorly researched data, which defies common sense and verifiable evidence on ground in Nigeria.
“For instance, how can anybody who claimsto be a close observer of the Nigerian oil and gas industry say that the processleadingto the award of Term Contract for lifting of Nigeria’scrude is shrouded in mystery, when it is common knowledge that the call for tender for this contract isperiodically published byalmostall the newspapers in Nigeriavia paid advert placements by the NNPC?’’ Green quipped.
The NNPC spokesperson explained that in practice the Corporation sells Nigerian Government equity crude oil to lifters/traders engaged on Annual Term Contract basis, addingthat at present, there are about 50of such term contracts.
“No company has amonopoly or exclusive right to lift any quantity of Nigerian crude oil. The process of selection of Traders/liftersis competitive and transparent. Traders lift crude oil according to the terms of Contractual agreements applicable to all traders, among others on (Free on Board) FOB basisand proceeds paid directly into designated Central Bank of Nigeria Crude oil sales accounts,’’ She said.
On the allegation that Nigeria’s crude is sold to some companies at special discounted rate, Green countered, “Nigerian crude oil is sold at published Official Selling Price (OSP), which is not only bench-marked against the internationallyrecognised pricing institution, Platts daily publications, but also fixed after a critical analysis of market fundamentals and price determinants at global level. OSP differentials are crude stream determined and cannot favor an individual or group of tradersas being insinuated.’’
Green thanked the Nigerian media for their sustained show of supportfor the growth of the oil and gas industry while appealing to them to alwaysresist the temptation of endorsing foreign media reports aboutthe industry as gospel truth.