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New strategy for crude sales soon-NNPC
At the recent Nigerian Oil and Gas (NOG) conference and exhibition in Abuja said Nigeria will be adopting a new strategy for the sale of crude oil. This is as a result of Nigeria’s loss of the United States of America crude oil market due to the Shale oil production which has made the US less dependent on foreign crude oil. This US stoppage disrupted the Nigerian crude oil sales and made Nigeria to look for new markets in Europe and Asia.
According to Dr Joseph Dawha, the group managing director of NNPC, ‘a strategic repositioning of the destination of Nigeria’s crude trade requires more than a change of destination but must include direct sales of crude to refineries in new markets and longer term crude sales contracts beyond the current one year term.’
He said other countries in Africa and the Middle East have adopted this strategy. He also said ‘this is the market captive strategy that the gulf countries such as Saudi Arabia and Kuwait have long adopted and this includes ownership of refineries in destination countries to ensure access to these markets. ‘Lately Angola has adopted this strategy with long term crude contracts to Indonesia and India. Nigerian crude is known to have competitive advantage in many of those destination markets.’
In another development, the group general manager of NNPC, Ohi Alegbe said the on-going rehabilitation and turn around maintenance (TAN) of the refineries also include the rehabilitation of the internal access roads at the Port Harcourt Refinery Company (PHRC) and the Pipelines and Products Marketing Company (PPMC) depot in Onne.
He said the roads rehabilitation will help promote safely and reduce the spilling of petroleum products on the roads. He said the poor state of the roads had affected the distribution of petroleum products and also led to strike action by the tanker drivers. He said the improved roads will increase the daily evacuation of petroleum products from 210 trucks to 260 trucks. According to Alegbe, with the completion of the roads, the evacuation of products can peak at 350 trucks a day.