IOC desperate to sign term contract for Nigerian crude

Vol 7, PW 22 (28 Jan 04) News in Brief

Indian Oil is getting increasingly desperate to sign a term contract with Nigeria for the import of crude.

Sadly, IOC is getting no response from the Nigerian National Petroleum Corporation. The situation has got so bad that this month IOC took the unusual step of writing to the Indian High Commission in Lagos asking it to use its influence with the government of Nigeria to persuade NNPC to initiate a dialogue.

Last October in Delhi, during a meeting between the foreign ministers of India and Nigeria, both sides agreed that IOC and NNPC would re-establish immediate cooperation in the long term purchase agreement for crude oil. In the agreement, IOC says it is looking for a Nigerian commitment to supply 6m t/y.

Last year India imported $2.02bn worth of Nigerian Bonny, Escravos, Farcados and Qua Iboe from the spot market, making it the second largest crude supplier to India after Saudi Arabia.