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LequteMan
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The NNPC is currently in a standoff with ExxonMobil and Royal Dutch Shell over ownership of physical crude cargoes, Reuters reports.
The dispute has delayed some of the country's monthly oil export programmes and added to confusion over just how much crude Nigeria has at its disposal to exchange for gasoline, sell to fund its record 2016 budget or use as debt collateral.
Discrepancies between NNPC and companies with production sharing contracts (PSCs) that entitle them to oil have always existed, but the crude price crash has increased the urgency to sort them out as both state and foreign firms feel the pinch.
"NNPC needs every cent they can get for fuel," said a source close to the negotiations, adding that "NNPC had a different set of books" than oil majors.
At issue is how much oil NNPC gets each month and how much it has to give to majors to cover costs under PSCs that help Nigeria export some 2 million barrels per day (bpd).
The lower the oil price, the more cargoes needed to pay companies under contracts. People familiar with the matter however said that NNPC was taking nearly as much crude for itself as when oil was above $100, eating into oil companies' allotments. It's believed that NNPC had got some six cargoes in total more than its share.
Exxon has confronted NNPC by refusing to allocate barrels from the Erha stream - significantly delaying its loading programmes.
"As a matter of practice, we do not comment on private discussions with government," Exxon said in a statement, adding "however, it is ExxonMobil's expectation that all parties recognise the need to meet their contractual obligations."
NNPC and Shell also declined to comment.
The dispute has delayed some of the country's monthly oil export programmes and added to confusion over just how much crude Nigeria has at its disposal to exchange for gasoline, sell to fund its record 2016 budget or use as debt collateral.
Discrepancies between NNPC and companies with production sharing contracts (PSCs) that entitle them to oil have always existed, but the crude price crash has increased the urgency to sort them out as both state and foreign firms feel the pinch.
"NNPC needs every cent they can get for fuel," said a source close to the negotiations, adding that "NNPC had a different set of books" than oil majors.
At issue is how much oil NNPC gets each month and how much it has to give to majors to cover costs under PSCs that help Nigeria export some 2 million barrels per day (bpd).
The lower the oil price, the more cargoes needed to pay companies under contracts. People familiar with the matter however said that NNPC was taking nearly as much crude for itself as when oil was above $100, eating into oil companies' allotments. It's believed that NNPC had got some six cargoes in total more than its share.
Exxon has confronted NNPC by refusing to allocate barrels from the Erha stream - significantly delaying its loading programmes.
"As a matter of practice, we do not comment on private discussions with government," Exxon said in a statement, adding "however, it is ExxonMobil's expectation that all parties recognise the need to meet their contractual obligations."
NNPC and Shell also declined to comment.
