The Nigerian National Petroleum Corporation on Thursday announced the termination of the Offshore Processing Agreements with three companies – Duke Oil Company Inc, Aiteo Energy Resources Limited and Sahara Energy Resources Limited. The agreements were sealed in January, 2015. Under the agreement, the NNPC allocates a total of 210,000 barrels of crude oil per day for refining at offshore locations in exchange for petroleum products at pre-agreed yield pattern.
NNPC also announced the cancellation of the terms of contract for the delivery of crude oil to the refineries in Warri, Port Harcourt and Kaduna.
The corporation said the decision to cancel the oil delivery contracts to refineries was taken after a proper evaluation of the contract terms, adding that the cancellation was due to exorbitant cost and inappropriate process of engagement. The firm said the new measures were aimed at cost reduction and to strengthen operational efficiency across its value chain. Read more