The Nigerian National Petroleum Corporation (NNPC) has signed a six-month Direct Sale-Direct Purchase (DSDP) agreement with the British BP for the supply of Premium Motor Spirit (PMS), also known as petrol.
The corporation disclosed this in a statement signed by its spokesman, Mr Ndu Ughamadu in Abuja on Thursday.
British Petroleum is the trading arm of BP Oil International Ltd.
He said the latest agreement would represent 20 per cent of NNPC’s total PMS supply under the DSDP arrangement.
Ughamadu said the agreement would basically allow the corporation to exchange crude oil with international oil traders for imported petroleum products over time.
He added that it was part of measures to sustain the robust supply of petroleum products across the country, especially as the nation moved toward Yuletide and beyond.
Ughamadu quoted the Group Managing Director of the corporation Dr Maikanti Baru, shortly after ceremony, as expressing the commitment of NNPC to ensure product availability.
Baru, who described NNPC as the nation products supplier of last resort, said the commitment would be accomplished by inviting new and old players to boost the Nigerian oil sector.
The NNPC boss noted that over the years, BP had demonstrated the capacity and robustness to augment the shortfall by NNPC, especially as the winter and 2019 general elections were approaching.
“As a reliable supplier, we think BP is a brand that we can always partner with. We trust the company and we have a good relationship with it.
“We also believe in the company’s commitment toward the development of local content,” Baru said.
He also commended BP for partnering with AYM Shafa, a local oil company, noting that the local oil company had been expanding its downstream footprints across the nooks and crannies of the country.
“BP partnership with AYM Shafa toward delivering on its DSDP obligations makes it a perfect fit for our plans to ensure that there is adequate supply of products throughout the coming Yuletide and even beyond the election period.
“In AYM Shafa, you are talking of a local company with over 150 retail outlets, depots as well as a good network of trucks nationwide.”
Responding, Mr John Goodridge, Head of Marketing and Origination of BP oil trading business said it was a great honour for BP to be trusted by NNPC as one of its strategic suppliers.
“We are delighted to have the opportunity to work more closely with the NNPC. Going forward, we hope to grow this mutual relationship to greater things,” Goodridge said.
According to him, BP boasts of a global network of refineries capable of generating the products to meet the specifications required by NNPC.
He said the ultimate was to ensure that over the next six months, “Nigeria does not witness any product shortages.”