Barely one month after the Minister of State for Petroleum, Dr. Ibe Kachikwu, negotiated a $15 billion crude-for-cash swap deal with India Government that would see the Indian government making an upfront payment to Nigeria for crude purchases, group of Indian crude oil refiners have indicated interest in increasing Nigerian crude oil imports from 9 million metric tonnes in 2016 (MMTPA) to 11 million metric tonnes in 2017.
By the terms of the deal, which are yet to be agreed, the $15 billion would be repaid on the basis of firm term crude contracts over some years and in consideration for Indian public sector (PSU) companies collaborating in the refining sector.
Other methods of repayment include: exploration and production activities on a government-to-government basis by Indian PSU companies, and long-term contracts for the supply of crude to Indian PSU companies from Nigeria.
Successful bidders for Nigeria’s crude oil term lifting contracts for 2017 will emerge by the middle of this month.
Indian refiners such as Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) currently have crude oil lifting contracts for 2016 with the Nigerian National Petroleum Corporation (NNPC).
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