NNPC bans over 100 oil takers from Nigeria waters in bid to curb corruption

Nigeria’s state oil company – the Nigerian National Petroleum Corporation (NNPC) has banned over 100 oil tankers from the country’s waters, citing a directive from president Muhammadu Buhari, in what traders said could be part of efforts to crack down on illegal crude oil trading.

Nigeria’s oil sector has been plagued by corruption, crude oil theft and massive fraud.

The vessels, which include mainly VLCC crude oil tankers, are banned from calling at Nigerian crude oil terminals and also from Nigerian waters with immediate effect.

Since taking office in May, Buhari has been working to fulfill a campaign promise to tackle corruption, particularly in the oil industry. He has since dissolved the NNPC board and ordered an investigation into a scheme through which the country swaps crude for oil products such as gasoline.

But some oil traders and vessel owners noted the list included ships that have not called at Nigerian ports for years, as well as several tankers, such as the Happiness, the Huge and the Diona, operated by Iranian group NITC, which has had little business for Nigeria for some time.

A trader with a major oil company said there was no obvious reason for the ban, while a source close to operations at Indian Oil Corporation, a key buyer of Nigerian crude, said the refiner would definitely be impacted.

India has been a top outlet for Nigerian oil in recent years as its light sweet crude have been pushed out of the once-dominant destination, the United States, by the shale oil boom.

Bjorn Hojgaard, chief executive of Hong Kong’s Univan Ship Management, was informed of the ban by reporters.

“There are a number of Univan-managed vessels on the list, but we have certainly not been notified,” Hojgaard said. “I don’t know what’s the story here, but will look into it, together with our customers.”

Buhari also last week replaced all his top defense chiefs, including the head of the navy.

Source: Reuters