Direct Sale-Direct-Purchase of crude oil products eliminates the middleman and saves the FG $1 billion- Dr. Kachikwu

Direct Sale-Direct-Purchase of
crude oil products eliminates the
middleman and saves the FG $1
billion- Dr. Kachikwu
The Minister of State for Petroleum/Group
Managing Director of the Nigerian National
Petroleum Corporation, NNPC, Dr. Ibe. Kachikwu,
yesterday appeared before the House of
Representatives’ Ad-Hoc Committee set up to
investigate the NNPC’s offshore processing and
crude swap arrangement for the period from 2010
to date stating that the Federal Government did not
pay any subsidy on petroleum products in January
2016.
He also said that the country would save $1 billion
from the newly introduced Direct-Sale-Direct-
Purchase, DSDP, arrangement in Nigeria’s crude
oil for products transaction which is supposed to
start next month
He explained that the DSDP was adopted to
replace the Crude Oil Swap initiative and the
Offshore Processing Arrangement in order to
introduce and entrench transparency in the crude
oil for product transaction by the corporation in
line with global best practices.
Kachikwu stated that the DSDP option eliminated
all the cost elements of middlemen and gave the
NNPC control of sale and purchase of crude oil
transaction with its partners, thereby saving one
billion dollars for the Federal Government.
He said:
“When I assumed duty as the Group
Managing Director of NNPC, I met the
Offshore Processing Arrangement (OPA) and
like you know, there is always room for
improvement.
“I and my team came up with the DSDP
initiative with the aim of throwing open the
bidding process. This initiative has brought
transparency into the crude-for-product
exchange matrix and it is in tandem with
global best practices.”
Vanguard