Vitol has signed a contract of affreightment with NIDAS Shipping Services to ship gasoline to Nigeria during the second quarter as part of its crude-for-product swap deal with Nigerian National Petroleum Corp (NNPC).
NIDAS, a London-based subsidiary of NNPC, said the contract would run from April to June in parallel with the swap deal.
This is the third COA NIDAS has won since it resumed charter operation in October after a seven-year hiatus.
Previously, BP and the State Oil Co of the Azerbaijan Republic also sealed their respective COAs with NIDAS to ship clean petroleum products to Nigeria in swap deals.
“The volume is increasing,” NIDAS chartering manager Panos Gliatis told TradeWinds.
NNPC has been selling crude in exchange of petroleum products in various swap deals, also known as direct-sale-direct purchase (DSDP) agreements in Nigeria.
The state-run energy firm is inviting partners to participate in its next round of DSDP, which will run for a year from July. The tender will close on 2 May.
As NNPC has stated that NIDAS would have the right of first refusal to ship cargoes involved in the DSDP deals, the counter-parties of NNPC have had to sign those COAs.
“Most of the key DSDP partners are thriving to ensure the fulfilment of the shipping obligation as stipulated in the current contract,” NIDAS managing director Lawal Sade said.
“NIDAS is consolidating its position in the international shipping market through the support and cooperation of the NNPC management.”
Since its revitalisation, NIDAS has chartered up to 18 product tankers to fulfill the contracts, including two handies, four LR1s and 11-12 MRs, according to Gliatis.
Looking forward, the company is mulling over time chartering some crude and product tankers to ship crude from and petroleum products to Nigeria for NNPC’s counterparties.
