NewsNigeriaOil & GasNigerian Crude Oil Cargoes Not Stranded at Sea – NNPC GMD

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The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has denied reports that 84 million barrels of Nigerian crude oil were stranded at sea because there no buyers to take them.

Mr. Kyari said there were no physical vessels floating on the sea with Nigerian crude oil waiting for buyers. According to a report by ThisDay, the NNPC GMD said crude oil was normally sold and done on paper two months ahead of delivery time.

“When you hear stranded cargo, it doesn’t mean crude that’s floating somewhere. Crude oil is always sold two months ahead and it’s on paper. Once you have that allocation or you have purchased the paper, it is now the business of the trader where to take it. They either take it to a refinery or to storage.

“So, anytime you hear there are stranded cargoes it means they have not decided whether to take it to storage or they have not found the refinery at that point in time. So, it’s not any cargo floating at any time that everybody can see,” Mr. Kyari explained.

The NNPC GMD further said a buyer could take different actions between when sales agreement is reached on paper to the actual delivery date.

“And when you hear stranded cargoes now, we are actually talking about June. We are now in May. This crude oil has not even gone out of the ground. So, there are many decisions customers can make. They can decide now to ask for shutdown so that the crude does not have even come to the surface.”

 

Adeola Oladipupo (Correspondent)
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