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DPR boss Charges Nigerian Lubricant Producers to Target Export Market By Margaret Nongo-Okojokwu
T
he Director, Department of Petroleum Resources (DPR), Sarki Auwalu, has charged lubricant producers in Nigeria to look beyond the shores of the country and target the export market in the distribution of their products. According to a statement signed by the DPR Head of Public Affairs, Paul Osu recently in Lagos, said Auwalu gave the charge when he played host to members of the Lubricant Producers Association of Nigeria (LUPAN) in a virtual meeting held recently.
The DPR boss noted that members of LUPAN had the capacity and resources to produce for exports, as was done in the past.He assured the members that DPR would provide adequate support through its robust regulatory framework to enable them to achieve the mandate.The DPR boss stated that the value created by LUPAN to the Nigerian economy was immeasurable. Auwalu stated that the DPR, as the regulator of the oil and gas industry in the country, it places high premium on its relationship with the association as partners in the realisation of government’s aspiration for the sector. He advised LUPAN to see DPR as a business enabler that is always ready to ensure investment success and sustainability for all stakeholders in the oil and gas sector.Sarki also emphasised the need for better strategic partnership a n d c o ntin u o u s c o lla b o r ati o n
between DPR and LUPAN.He reiterated that DPR was working with relevant government agencies to check the influx of sub-standard lubricants into the country and that solution would soon be provided for LUPAN members. The DPR boss informed the members that the department would soon begin the implementation of a digital solution, using the short code messaging system to check for adulterated lubricants in the country.In his remarks, the President of LUPAN, Alhaji Mustapha Adio, assured Auwalu that the association would continue to partner DPR for the development of the lubricant market in Nigeria. He also commended the positive interventions of DPR in the creation of enabling business environment for its members.
NNPC Inks $1.5bn Oil Prepayment Deal With Vitol, Matri By Daniel Terungwa
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igerian National Petroleum Corporation (NNPC) has signed a $1.5 billion prepayment deal led by Standard Chartered and backed by oil traders Vitol Group and Matrix Energy, two sources close to the matter said, the first since the coronavirus pandemic. According to Reuters, the deal provides Nigeria with much-needed cash after its finances were hit by the oil price crash in April as COVID-19 lockdowns erased nearly one third of global oil demand. The financing package called Project Eagle was also backed by African Export Import Bank (Afrexim) and
United Bank for Africa. Vitol and Matrix will each get 15,000 barrels per day (bpd) of crude as repayment over five years, starting in August. Nigeria’s crude production is nearly 2 million bpd. Nigerian trader Matrix confirmed its participation in the deal. Vitol, the world’s biggest independent oil trader, declined to comment. A spokesman for Standard Chartered declined to comment. Afrexim did not have an immediate comment. UBA and NNPC did not immediately respond to requests for comment. Prepayments with traders are widely used in commodity finance as banks consider them to be one of the more secure forms of lending in countries
viewed as risky. For trading firms such as Vitol, these loans are ideal for securing long-term supplies and boosting razor-thin margins. NNPC has been trying to raise cash through prepayments with traders for years. However, the firm’s opaque finances and costly gasoline subsidies have made it tough for it to secure private financing on attractive terms. Nigeria announced the end of subsidies earlier this year. NNPC will use a large portion of the money to pay taxes owed by its subsidiary NPDC, the sources said. The remainder will go towards operational expenses and capital expenditure. One of the sources said money from the pre-payment could fund an upgrade of the Port Harcourt refinery.
Majorwaves Energy Report AUGUST 2020, Vol 3 No 8
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