Nigeria's NNPC tenders to buy more gasoline to stave off shortages

LONDON: Nigerian state oil company NNPC has issued a tender to buy up to 1.55 million tonnes of gasoline from January to April in its latest effort to stave off shortages that have recently plagued Africa's most populous nation.

The tender, which was issued on Monday afternoon and closed on Tuesday, sought 42 cargoes of gasoline, each 37,000 tonnes, on top of the volumes NNPC is taking via ongoing crude-for-product swap contracts.

Traders said the call for cargoes went only to the companies holding the swap contracts, dubbed direct sale, direct purchase agreements (DSDP).

NNPC is asking for pre-delivery of the gasoline, with payment up to 45 days after delivery in either cash or crude oil.