Nigeria Favors local firms in $40 billion oil contract awards

April 30, 2014

Nigeria has awarded most of its long-term oil contracts worth an estimated $40 billion a year to local companies, meaning global traders need to partner with them to access crude from Africa’s top producer.

Global commodity,┬átraders, refiners and Nigerian dealers jockey at an annual tender for access to the OPEC member’s prized crude oil, which is easy to refine and produces more high-value fuels.

The contracts cover around 340 million barrels of oil, worth close to $40 billion annually based on current Brent prices, and run for a year, though they can be renewed. They were allocated to just 28 companies, versus around 50 in 2012, the last time they were awarded.

Several Nigerian oil companies featured on the annual list for the first time, such as oil trading company Hyde Energy, oil and gas firm Springfield etc.

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