Nigeria and its former long-term crude oil trading partner, the United States, may soon renew their trading relationship in crude oil, the Minister of State for Petroleum, Dr. Ibe Kachikwu, reported.
The minister made this disclosure known during the inspection of the status of repair works on one of the country’s refineries in Kaduna.
Despite the Nigerian National Petroleum Corporation’s (NNPC) difficulties in meeting its cash call obligations, the minister stated during the weekend that the United States had made overtures to resume buying Nigeria’s crude oil.
The development came on the heels of President Muhammadu Buhari’s July 2015 visit to the US. He, however, did not disclose details of the development but said that the US had indicated its interest in buying “very limited” quantities of Nigeria’s crude and that negotiation on that was ongoing.
“The fact of US actually being back into the sales of crude market obviously will impact on prices but what you find is that the volume of export that US intends to do is really minimal because there is a lot of local internal consumption and strategically they are still reaching out to buy a couple of Saudi barrels and in fact they are opening up to buy a couple of Nigerian barrels,” Kachikwu said.