Nigeria Stays Local With Oil Contract Awards

Reuters reported today that Nigeria has awarded oil contracts worth roughly $40 billion a year to domestic oil companies. The contracts make up the majority of Nigeria’s long-term oil contracts, and the move is in line with the country’s policy to increase the role of local businesses in the oil industry, according to Reuters.

As quoted in the publication:

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. In a break with tradition, no contracts were given directly to global trading houses Glencore Xstrata (GLEN.L), Vitol VITOLV.UL, Trafigura TRAFGF.UL or Gunvor, with only Switzerland’s Mercuria winning a contract, according to a list that four industry sources verified as accurate.

Click here to read the full Reuters article.