Maikanti Baru, group managing director of Nigerian National Petroleum Corporation (NNPC), says direct-sale-direct-purchase (DSDP) contracts have been extended till December 2018.
The agreement allows for sales of crude oil to refiners, who will in turn supply NNPC with an equivalent worth of petroleum products.
It eliminates middlemen and allows NNPC take control of crude oil transactions with its partners.
The GMD made this known while speaking on the sidelines of the Organisation of Petroleum Exporting Countries (OPEC) seminar in Vienna.
The agreement was previously supposed to expire in June.
“We have rolled it over until the end of December,” Baru told Reuters.
In 2016, the federal government suspended the crude swap agreement where crude oil was exchanged for petroleum products through third-party traders at a pre-determined yield pattern.
Ibe Kachikwu, minister of state for petroleum resources, said DSDP would ensure transparency in the transactions.
“My team and I 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 in tandem with global best practices,” he said.
“The DSDP initiative whittles down the influence of the minister in the selection of bid winners as it allows all the bidders to be assessed transparently based on their global and national track record of performance before the best companies with the requisite capacities are selected.”