Amb. Oludare Awoniyi, Nigeria\u2019s Ambassador to the Bolivarian Republic of Venezuela said on Monday that resuscitating the petroleum partnership between Nigeria and Venezuela would reduce the price of petroleum products in both countries.<\/p>\n\n\n\n
Awoniyi made the disclosure in Caracas and recalled that Nigeria and Venezuela had pending agreements which could be mutually beneficial once implemented.<\/p>\n\n\n\n
According to Awoniyi, the two countries have large deposits of crude and the agreement if implemented will solve the current crisis of unstable petroleum pump prices in Nigeria.<\/p>\n\n\n\n
\u201cIn the late 70s to the early 80s, we had an agreement between the Nigerian National Petroleum Corporation (NNPC) and Venezuela\u2019s Pedevesa, which is their own national oil company.<\/p>\n\n\n\n
\u201cAs a matter of fact, our NNPC was modelled after Pedevesa and as at that time, the President of Nigeria, who is the current President, Muhammadu Buhari was our Minister of Petroleum.<\/p>\n\n\n\n
\u201cAn agreement was made that the Venezuelans will swap Nigeria\u2019s crude which is the lightest in the world for the Venezuelan crude which is the heaviest in the world.<\/p>\n\n\n\n
\u201cAnd on the basis of that agreement we designed the Kaduna Petrochemical Refinery, particularly to process Venezuelan crude.<\/p>\n\n\n\n
\u201cThe idea was that because it was so rich in petrochemicals, we will get enough products for our use and they would blend light crude with theirs to get enough products.<\/p>\n\n\n\n
\u201cBut the agreement did not come through because our refineries went into disrepair and more so, Venezuela has been under sanctions their refineries were closed for some time.<\/p>\n\n\n\n
\u201cBut they have been able to resuscitate some of their refineries and they are now beginning to produce more crude and refining it and they also have excess refining capacity.<\/p>\n\n\n\n
\u201cOne of the things that will benefit both countries \u2014 and we have discussed it with the foreign ministry \u2014 is if we can get NNPC and Pedevesa back on their handshake of the past.\u201d<\/p>\n\n\n\n
The envoy noted that although Venezuela was under sanction, such agreements with Nigeria could go on without exchange of financial instruments only products.<\/p>\n\n\n\n
He explained that if both countries implemented the agreement, it would result to a situation where the excess capacity of Venezuela could actually be used by Nigeria to process its own crude.<\/p>\n\n\n\n
He said that Venezuela would benefit because it could blend some of Nigeria\u2019s crude to get more petrol and Nigeria would also benefit because Nigeria\u2019s crude would be processed and the country would get refined products.<\/p>\n\n\n\n
\u201cIt is not a straight forward process but we can work it out in such a way that we do not have to exchange any financial instrument, more like a swap.<\/p>\n\n\n\n
\u201cWe give them crude and they give us refined product based on an agreed quantity. That will be of advantage to us because then we will be processing at `factor\u2019 price, basically.<\/p>\n\n\n\n
\u201cAlso, whatever quantity we process in Venezuela will not require any subsidy. So it is a saving to government\u2019s finance because the government will sell fuel cheaper,\u201d Awoniyi said.<\/p>\n\n\n
Amb. Oludare Awoniyi, Nigeria\u2019s Ambassador to the Bolivarian Republic of Venezuela said on Monday that resuscitating the petroleum partnership between Nigeria and Venezuela would reduce the price of petroleum products in both countries. Awoniyi made the disclosure in Caracas and recalled that Nigeria and Venezuela had pending agreements which could be mutually beneficial once implemented. […]<\/p>\n","protected":false},"author":2,"featured_media":12475,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[908],"tags":[485],"class_list":["post-38730","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oil-gas","tag-petroleum","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"yoast_head":"\n