Friday 28 February 2014

Trader backs NNPC on SWAP deals

Executive Director, Sahara Energy, Wale Ajibade has backed the Nigerian National Petroleum Corporation (NNPC) conduct of the oil SWAP arrangement, saying the deals conformed to international standard.
Ajibade who addressed the House Committee Upstream currently investigating the alleged connivance of NNPC with Swiss Oil Traders to defraud the government, noted that the deals were transparent and complied with all audit requirements.
Ajibade who represented Trafigura Trading Oil Company based in Switzerland explained that there was nothing untoward between his company’s SWAP arrangements with NNPC/PPMC.
According to him “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 61.2 million 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”.
He said in view of the above, there was no remote possibility that NNPC would lose $6.8 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. 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.  There is therefore no value loss to the federation. The claims by the Bernes Declaration are baseless and without material substance and should be set aside in its entirety”, he added.

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