NNPC, BP sign fuel supply deal

The Nigerian National Petroleum Corporation (NNPC) has signed a six-month direct sale-direct purchase (DSDP) agreement with BP for petrol supply, the NOC announced Thursday.

Under the deal, BP is set to supply 20% of Nigeria’s petrol needs, the NOC said. The super-major will partner with local company AYM Shafa to distribute the fuel.

“BP’s partnership with AYM Shafa towards delivering on its DSDP obligations makes it a perfect fit for our plans to ensure that there is adequate supply of products throughout the coming Yuletide and even beyond the election period. In AYM Shafa, you are talking of a local company with over 150 retail outlets, depots as well as a good network of trucks nationwide,” NNPC group managing director Maikanti Baru said.

Nigeria is Africa’s largest crude oil exporter, yet it imports most of its domestic refined fuel needs. According to the Nigerian Bureau of Statistics, the country imported 17 billion litres of petrol in 2017. Heavy reliance on imports is due to the country’s inability to utilise the capacity of its existing refineries despite its crude output being generally light and sweet with a low sulphur content.