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Kyari: NNPC to End Oil Sale Discounts July

  • Nigeria to comply with OPEC output cut quota by July

The Nigerian National Petroleum Corporation (NNPC) has set a July deadline to end its crude sales discount regime.

NNPC Group Managing Director, Mallam Mele Kyari, in an interview with Bloomberg TV yesterday, said the corporation was looking at achieving the target by June 30 or latest by July.

He added that if oil price settled at the current $42 or thereabout, it is still a good business for NNPC and the country.

Kyari’s interview was conducted at a weekly programme tagged ‘Half-Time Talk’ organised by Gulf Intelligence, a United Arab Emirate-based communication and research firm.

Kyari also said though Nigeria did not fully comply with a pact by oil producers to rein in output to balance markets, it would make additional cuts to make up for the lapses by mid-July.

The crash in oil prices a couple of months back due to heavy decline in demand for crude, which was a major fallout of the COVID-19 pandemic impact, led the NNPC into offering oil traders huge discounts on Nigerian crude oil grades.

Two of Nigeria’s banner grades, Qua Iboe and Bonny Light, were to sell at discounts of $3.92 and $3.95 respectively to dated Brent.