NEW REVISED OIL SWAP DEAL SIGNED BY FG.

"A hunter who has only one arrow does not shoot with careless aim" these are my words of advice for the handlers of our Nation's jewel "OIL" which has seen its value plunge to an all time low and is affecting virtually every segment of the economy of oil rich Countries especially Nigeria which is a mono product economy. Four new crude swap contracts have been made to replace those cancelled last month by the Nigerian National Petroleum Corporation (NNPC), These contracts were vital for bringing in about half of the country’s domestic gasoline demand. The deals cancelled affected Nigerian companies Sahara Group, Aiteo Group and NNPC’s trading arm Duke Oil because they were “skewed in favour of the companies”, according to the NNPC. Though there is a change to the new contract winners, it’s unclear whether these will be more transparent. But cash-strapped NNPC feels it has no choice but to continue with some form of swap arrangement. The only other form of gasoline input comes from a fraud-ridden import subsidy scheme and revamping its refining system, neglected for years, has already met crude supply obstacles. Africa’s biggest oil producer has been hit hard by the sustained slump in global crude prices since last year as oil sales account for the bulk of government revenues. The cancelled deals will run through September before being replaced by the interim offshore processing agreements (OPAs) between NNPC subsidiary the Products and Pipelines Marketing Co (PPMC) and four joint venture companies, industry sources and a state oil company source said. Two of the agreements are with NNPC joint-venture companies: One with Swiss trader Vitol called Calson and the other with commodities trader Trafigura called Napoil. The other two are with non-incorporated joint ventures between oil major BP and Nigermed Ltd and NNPC’s trading arm Duke Oil Co with Sahara Group.