Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Mr Mele Kyari has set a July deadline for the corporation to end its crude sales discount regime.
Kyari in an interview with Bloomberg TV on Wednesday said the corporation plans to achieve the target by June 30 or July at most.
The crash in oil prices due to heavy decline in demand, a consequence of the COVID-19 pandemic, resulted in the NNPC offering oil traders huge discounts on Nigerian crude oil grades in desperate efforts to find buyers.
Two of Nigeria’s main grades, Qua Iboe and Bonny Light, were to sell at discounts of $3.92 and $3.95 respectively to dated Brent, as Nigeria struggled to find buyers for it’s crude.
However, following the rebound in crude prices, Kyari noted that if oil price settled at the current $42, it would still be a good business for the NNPC and for Nigeria.
Also speaking at a separate event, Mr Kyari said Nigeria would wait until the oil industry laws are put in place before a major bid round will hold.
He said, although bid rounds for marginal fields can hold, substantive bid rounds for major blocks cannot be embarked upon without a functional law in place.
Kyari who was speaking at the third Nigerian Association of Petroleum Explorationists (NAPE) webinar series, said: “The country needs a softer fiscal environment. Marginal fields can go ahead without the PIB because they are small, but major licenses cannot happen.”
He explained that the objective of the marginal fields bid round was to create opportunities for small companies and not necessary for government to make money. “The objective is not to gather money for the government but empower players,” Kyari stated