Nigeria favours local firms in $60 billion oil deals

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Africa’s top oil producer Nigeria will award nearly half of its $60 billion (38.24 billion pounds) annual supply contracts to local companies, a document showed, and cut supplies to major commodity traders such as Glencore .
The OPEC member has allocated about three-quarters of its daily production or around 1.6 million barrels per day (bpd) via term contracts to 50 companies including 21 Nigerian firms, a document sent to winning firms showed.
The oil — which amounts to around 580 million barrels sold over the next 12 months — is worth nearly $60 billion based on current premiums of the country’s light, sweet crude to Brent futures.
The tender result, awaited since April, showed that around 45 percent of the allocated oil was earmarked for companies either based in Nigeria or owned by Nigerian companies including state oil firm NNPC’s subsidiary Duke Oil, which doubled the size of its contract from last year to 60,000 bpd.

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