Breaking News

NNPC receives N28.85bn from Glencore for crude oil sales

Kindly Share This Story:

By Michael Eboh

THE Nigerian National Petroleum Corporation, NNPC, received $94.279 million, about N28.85 billion, from Anglo-Swiss multinational commodity trading and mining company, Glencore, being payment for crude oil sold to the company in 2017.

Glencore is one of the oil traders selected to lift Nigeria’s crude oil under various contracts, such as the crude oil term deal and the direct sale direct purchase scheme among others. In its 2018 report to the Canadian authorities obtained by Vanguard, Glencore disclosed that the payment was for a total of 1.9 million barrels of Nigerian crude oil.

Group Managing Director of the NNPC, Dr Maikanti Baru

This translated to an average of $49.62 per barrel of crude oil. However, Glencore failed to disclose the crude oil grades purchased from the NNPC, describing it as commercially sensitive information. Glencore made total payments of $1.448 billion for 29.244 million barrels of crude oil purchased from six countries, including Nigeria, Ghana, Cameroun, Chad, Republic of Congo, Norway and Chad.

The report pointed out that NNPC, on behalf of Nigeria, accounted for 6.5 per cent of Glencore’s  total’s payment in 2017, while the country ranked fifth on the payment schedule, with Ghana’s National Petroleum Corporation emerging the sixth least paid with $45.176 million. It stated that Norway’s Statoil received the highest payments of $509.34 million; followed by Cameroun’s Societe Nationale des Hydrocarbures, SNH, receiving $311.25 million, while Chad’s Societe des Hydrocarbures du Tchad and Democratic Republic of Congo’s Societe Nationale Des Petroles Du Congo received total payments of $294.066 million and $194.24 million respectively.

The N29 billion Glencore paid the NNPC was more than enough to fund some power projects listed in the 2018 budget, such as provide the N9.4 billion to be set aside as counterpart fund for the Mambilla hydro power project; and provide the N9.7 billion counterpart funding earmarked for transmission lines and substations.

In addition, it would fund the N2.2 billion construction of 215MW LPFO/ Gas Power station in Kaduna; N3.4 billion Kashimbilla transmission and the N14.2 billion Fast Power Programme Accelerated Gas and Solar Power Generation. The money could also fund the N26.7 billion Federal Government National Housing Programme.

The fund would also pay for all the strategic health projects listed in the 2018 budget, such as the N2.4 billion required to match grant from UNFPA, USAID, UNICEF; N1.3 billion for Strategic Joint Venture Investments in selected Tertiary Health Institutions with Nigerian Sovereign Investment Authority (NSIA) and the N8.9 billion required for procurement of RI vaccines and devices.

In addition, Glencore’s payment to the NNPC would provide the N3 billion required for Counterpart funding including global fund, health, and GAVI; N300 million for health emergencies and contagious diseases outbreaks, such as meningitis, measles, yellow fever, monkey pox, among others; N200 million for Midwives Service Scheme; N1.2 billion Polio Eradication Initiative; and N1. billion training/central procurement of 300,000 dialysis consumables.

Kindly Share This Story:
All rights reserved. This material and any other digital content on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from VANGUARD NEWS.


Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.
Do NOT follow this link or you will be banned from the site!