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NNPC’s crude oil transactions conform with int’l best practices— Sahara Energy boss


ABUJA— The Executive Director, Sahara Energy, Mr. Wale Ajibade said the Nigeria National Petroleum Corporation, NNPC, has conformed with international best practices in all dealings with their international and Nigerian-owned trading partners.

Mr. Ajibade, who made the declaration in his presentation to the House of Representatives Committee on Upstream currently investigating the alleged connivance of NNPC with Swiss Oil Traders,which a copy was made available to Vanguard in Abuja, noted that SWAP arrangement referred to by the Bern Declaration was in line with the known practices in the oil industry.

Ajibade commended NNPC for promoting the Nigerian Local Content Act of 2010 as well as encouraging Nigerian Companies to deepen and expand their participation in the Upstream and Downstream Sectors of the Petroleum Industry, which had hitherto been left to foreign concerns.

Mr. Ajibade further revealed that currently Sahara Energy employed 600 Nigerians since the Nigerian Local Content Act came into being in 2010, and the transformation of the power Sector, the company’s staff strength is expected to add 3000 Nigerians.

Ajibade who is the representative of Trafigura Trading Oil Company based in Switzerland confirmed that his companies SWAP arrangement with NNPC/PPMC is in line with international standard, transparent and complies with all audit requirements.

“Furthermore, NNPC in its records noted that Nigerian traders collectively account for 98.2million barrels on 2013. The other international traders, including the “Swiss Trading Companies’ lifted 61.2million barrels while offshore and the Nigerian refineries took 36.2 and 38.3 million barrels respectively. The NNPC trading companies account for 83.5 million barrels.

“In view of the above, NNPC sees no remote possibility of the loss of USD6.8 billion from sales below market value to the companies described by the petitioners as “Swiss Trading Companies.

“The SWAP arrangement referred to by the Bern Declaration was in line with the known practices in the oil industry, adding that the NNPC had to dispose unrefined portion of its 445,000 barrels to meet domestic needs of petroleum products.
“It is to be noted that the NNPC delivers the international market value of the crude oil to the federation on the basis of the general sales agreement and conditions.”



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