The Nigerian National Petroleum Corporation (NNPC) has signed a six-month Direct Sale-Direct Purchase (DSDP) agreement with the British Petroleum’s (BP) trading arm, BP Oil International Limited, for the supply of Premium Motor Spirit, also known as petrol.
The move is said to be part of measures to sustain the supply of petroleum products across the country and especially going into the Yuletide period and beyond.
A statement issued by the corporation’s spokesman, Ndu Ughamadu, said the latest agreement will represent 20 per cent of NNPC’s total PMS supply under the DSDP arrangement. He explained that the DSDP allows the corporation to exchange crude oil with international oil traders for imported petroleum products over a period of time.
Speaking shortly after a brief signing ceremony at the NNPC Towers yesterday, Ndu stated that the group managing director of the corporation, Dr. Maikanti Baru, while speaking at the briefing, said the Corporation was committed to products availability by inviting new and old players to play in the Nigerian oil sector.
“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 towards the development of local content,” Baru stated.
Responding, head of Marketing & Origination of BP’s oil trading business, Mr. John Goodridge, said it was a great honour for his company to be trusted by the NNPC as one of its strategic suppliers.
He further assured that his company boasts of a global network of refineries capable of generating the products to meet the specifications required by the NNPC. He said the ultimate was to ensure that over the next six months, Nigeria does not witness any products shortages.
Since its inception, the DSDP model has not only saved NNPC millions of dollars that would have been paid through demurrage, it has also proven to be a major component of the corporation’s petroleum products supply portfolio which ensures stability in products supply nationwide.