NNPC to save $1bn with Direct Sale-Direct Purchase – Kachikwu

The Nigerian National Petroleum Corporation (NNPC) has unveiled plans to replace the controversial crude-for-products exchange arrangement popularly referred to as crude swap with Direct-Sale–Direct-Purchase (DSDP), The Sun reports.

The Minister of State for Petroleum Resources and Group Managing Director of the NNPC, Dr. Emmanuel Ibe Kachikwu, made the disclosure when he appeared before the House of Representatives Ad-Hoc Committee set up to investigate the Corporation’s offshore processing and crude swap arrangement for the period between 2010 to date.

Kachikwu assured the House of Reps Members that DSDP, which is scheduled to take off by March, would save the country about $1 billion. He noted that the DSDP was adopted to replace the Crude Oil Swap initiative and the Offshore Processing Arrangement so as to introduce and entrench transparency into the crude oil for product transaction by the Corporation in line with global best practices.