Top official sources at the Nigerian National Petroleum Corporation (NNPC) have indicated that Nigeria is not in any price war or struggle for market share for crude oil with Saudi Arabia, ThisDayreports.
Saudi’s Aramco recently disclosed that it has priced its September shipments to its Asian customers at $1.10 below the continent’s benchmark. Bloomberg reported that the discount was $1.30 lower than the price for August shipments and 10 cents lower than estimates made by refiners and commodity traders it polled. However, a top official source at NNPC said that the corporation was not disturbed by the recent market decision of Saudi Aramco to discount its future oil sales to its Asian customers in a bid to gain more market share. He maintained that the NNPC has its market intact, but refused to disclose further details on this due to it’s confidential nature.
Another official source who also spoke on the development said even with the discount, Nigeria still has off-takers in both Asia and Europe who are loyal to its Bonny Light crude. He disclosed that these off-takers often get unannounced discounts on crude oil sales to them, adding that NNPC has firmly committed crude oil contracts with them. The NNPC sources also stated that other than the country’s current challenges of keeping it’s production stable due primarily to facility vandalism in the Niger Delta, the corporation was quite comfortable with its existing crude oil transactions.