NNPC Begs Fuel Importers to be Patient as it Defers Payment for 3 Months
- The Nigeria National Petroleum Company (NNPC) has asked for understanding from major oil importers as it defers their payment for three month
- Mele Kyari, NNPC Chief Executive Officer, stated this during an interview where he said the company would pay in due time
- Kyari stated that the development is due to falling crude oil prices and Nigeria's declining production capacity
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Nigeria National Petroleum Company Limited has asked for three months extension from fuel importers as it defers their payments.
According to the company, this is due to the declining oil price.
Source: Twitter
NNPC Chief Executive Officer Mele Kyari announced the development during an interview with Bloomberg on Monday, October 10, 2022.
Why NNPC delayed payment
As Nigeria intensifies its fight against oil theft, Kyari stated that NNPC had asked the fuel trading firms to allow for 90 days' grace.
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The companies involved are Oando, Vitol. Total and Sahara Group.
Kyari noted that declining crude oil production has caused the company to delay payments to some domestic fuel suppliers by at least 90 days.
The NNPC boss said the company swaps crude oil with international traders like Vitol Group and TotalEnergies SE and domestic groups like Sahara Group and Oando.
Kyari also expressed confidence in the recovery of Nigeria's crude production and said it will allow the firm to cover its delayed payments obligations and expects that Niger will add about 500,000 barrels per day to its current output of two million by November end.
No cause for panic
He said the country would soon restart activities on the Forcados export terminal and Trans-Niger pipelines.
The NNPC helmsman said the new agreement co-exists with the previous deals under which the company is expected to provide crude before traders deliver fuel.
NNPC locates, shuts down 395 illegal refineries associated with Forcados, hints on illegal oil Pipeline
Recall that Legit.ng reported that the Nigeria National Petroleum Company Limited (NNPC) is putting all its efforts into stopping the monstrous growing oil theft in Nigeria.
According to the company's Chief Executive Officer, Mele Kyari, the firm has discovered and dismantled the operations of about 395 illegal refineries linked to the Forcados, a small town in the Niger Delta.
Kyari said the company had deactivated the illegal refineries, taken down 273 wooden boats, and ruined 374 illegal reservoirs and 1,561 metal tanks. The NNPC boss stressed that the company has also seized over 49 trucks and burnt them down. In addition, about 898 oil pits and 219 sites have also been dismantled.
Source: Legit.ng
