BreakingCampus NewsEducationEntertainmentForeign NewsForeign PoliticsLifestyleLocal NewsLocal SportsMagazineMenTwitter TrendsWomen

NNPC Replaces OPA Transactions with Direct Crude for Product Swap

0
NNPC Replaces OPA Transactions with Direct Crude for Product Swap
NNPC Replaces OPA Transactions with Direct Crude for Product Swap
EditorBy

NNPC Replaces OPA Transactions with Direct Crude for Product Swap

By Editor

The Nigerian National Petroleum Corporation (NNPC) has moved to boost transparency in the oil sector by adopting a key recommendation from the last OTL Africa Downstream Week.

  The corporation scrapped offshore processing agreements and replaced them with direct crude sales and direct product purchases from reputable international refineries. Industry stakeholders welcomed the decision.   The communique, signed by Reginald Stanley, Advisory Board Chairman, and Emeka Akabogu, Convener, also called for stronger policies to prioritize local refining. It urged the government to create a National Refining Policy to attract investment and grow the sector.   Key resolutions from the 9th OTL Africa Downstream Week include:   1. Scrap petroleum subsidies immediately. They stifle investment, innovation, and consumer value. Nigeria can no longer afford them with low oil prices and a weak naira.     2. Deregulate the industry to attract investors, improve efficiency, and guarantee supply.     3. Shift focus from fuel imports to refinery development through a clear National Refining Policy.     4. Encourage private sector participation to drive jobs and industry growth.     5. Pass the Petroleum Industry Bill to create legal certainty and boost competitiveness.     6. Ease access to foreign exchange for fuel importers and set transparent gasoline prices.     7. Use crude-for-product swaps only as a short-term measure. Ensure transparency and avoid offshore processing deals.     8. Expand domestic gas use by fixing governance gaps and pricing issues.     9. Cut taxes and tariffs on LPG, and build infrastructure like cylinders, plants, pipelines, and storage. Scrap kerosene subsidy to grow LPG adoption.     10. Oil companies should practice strong corporate social responsibility to support communities and reduce piracy risks.     11. Tackle importation of substandard lubricants, regulate blenders, and promote local base oil production.     12. Strengthen advocacy for strict lubricant quality standards.     13. Commercialize pipelines through concession or sale for efficient product distribution.     14. Invest in oil spill surveillance to monitor pipeline vandalism.     15. Fix roads and revive rail transport, possibly through PPPs, to move petroleum products safely.     16. Train truck drivers to improve safety.     17. Introduce tanker tracking and petroleum product marking systems to curb malpractice.     18. Establish a strong regulator with clear roles to ensure fair competition.     19. Enforce policies to fuel economic growth via the downstream sector.     20. Support biofuels development, provided it does not threaten food security.       The communique, issued on October 29, 2015, represents the official position of Nigeria’s downstream petroleum industry on long-term growth and sustainability.   Signed:   Reginald Stanley, Chairman, Advisory Board, OTL Africa Downstream Week   Emeka Akabogu, Chairman, OTL Africa Downstream        

Discover more from Breaking News

Subscribe to get the latest posts sent to your email.

Previous
Next

You may also like

Comments are closed.

More in:Breaking