Trafigura Said to End Nigerian Oil-Swap Deal on Tighter Scrutiny

By Andy Hoffman Trafigura Beheer BV, the third-largest crude trader, has scrapped a controversial products-swap deal with Nigeria’s national oil company, according to a person familiar with the matter. The firm will no longer exchange gasoline and other petroleum products for crude oil with Nigerian National Petroleum Corp., said the person who asked not to be identified because the matter is confidential. The arrangement was abandoned, in part, because of increasing scrutiny over deals in Nigeria, Africa’s largest oil producer, by banks that provide financing to commodity traders, the person said. So-called swap deals, where no money is exchanged, have been criticized by the Berne Declaration and other non-governmental organizations because they take place outside the banking system and the oversight of regulators who supervise lending for commodity trading transactions. Commodity trade swap contracts are “beyond any legal or political control,” said Oliver Classen of the Berne Declaration, a financial watchdog that published a 2013 report on the activities of commodity traders in Nigeria. Trafigura in November broke ranks with most of its competitors by agreeing to join the Extractive Industries Transparency Initiative and disclose oil-related payments it makes to governments who have signed on to the program. Trafigura’s EITI … continue reading

The post Trafigura Said to End Nigerian Oil-Swap Deal on Tighter Scrutiny appeared first on CTRM Center.

Source: CTRM Center

Leave a reply