Nigeria awards $30bln in oil supply deals

Reuters

30 March 2011

Nigeria awards $30bln in oil supply deals

LONDON (Reuters) - Top African oil producer Nigeria has awarded 2011 supply contracts worth around $30 billion, with trading companies Vitol, Trafigura and Glencore landing some of the biggest contracts, a document showed.

The Nigerian National Petroleum Corporation (NNPC) has awarded term contracts for around 1.5 million barrels per day (bpd) from its share of the country's oil production.

Based on the current price of Brent crude oil, the total supply deals are worth around $172 million a day or $32 billion for the June-December period, when trade sources said the contracts would be valid.

Given crude supply disruptions from Libya, relatively stable Nigerian oil output since a 2009 amnesty has increased the appeal of the west African country's light, sweet oil and competition for contracts is fierce, trade sources said.