NNPC and Petrobras to enhance bilateral trade on petroleum

Nigerian National Petroleum Corporation (NNPC) and Petroleo Brasileiro (Petrobras) are working out details of agreements that will enhance bilateral trade on petroleum.
Under the arrangement, Petrobras will directly purchase light sweet crude oil from Nigeria and export refined petroleum products to NNPC for supply to the domestic market.

Brazilian Industry and Foreign Trade Minister, Mr Luis Fernando Furlan, who led a trade delegation to Nigeria said the agreement would be part of broader bilateral economic cooperation being explored by governments of both countries to benefit their internal economies.
With a reserve base of 11.2 bn barrels and producibility of 1.61 mm barrels of mainly heavy crude oil per day, Brazil consumes 1.81 mm bpd out of which 335,000 bpd is imported. The country exports its heavy (sour) crude oil and imports sweet (low sulphur) crude prized for its high yield of transport fuel.

Nigeria is the fifth largest supplier of light sweet crude oil for Brazilian refineries which now seek to eliminate middle men in their product export back to Nigeria. Petrobras which Mr Furlan said has invested over $ 500 mm or N 6.75 bn in Nigeria offshore exploration and production activities added that the company would further explore opportunities in Nigerian downstream sector.
Other areas of bilateral trade cooperation between the two countries, he listed, include agriculture, metallurgical, petrochemical, automobile, agricultural and industrial machinery and manufacturing. Others, he said, are, pharmaceuticals, electricity, infrastructure including construction of bridges, rails, roads, metros and underground tunnels.

In his presentation to the Brazilian delegation at a meeting held at Sheraton Hotels, Lagos State Commissioner for Industry and Commerce, Mr Lanre Balogun, said the state holds attraction for foreign direct investment in areas of tourism, housing, power and transportation.
He told the delegation that the state would welcome private partnership in provision of common services and utilities in select industrial estates, adding that industries in the state were willing to pay for any service that would bring down cost of production in their companies. Highlighting the population density in the state and the associated high consumption of goods and services in the state, Mr Balogun promised the delegation double digit returns on any investment sited in the state.