At a time that international crude oil
market is getting more competitive, the Hungarian Government has
indicated interest to purchase crude oil and Liquefied Natural Gas (LNG)
from Nigeria.
The Hungarian Ambassador to Nigeria,
Professor Gabor Ternak, who disclosed this during a courtesy call on the
Group Managing Director of the Nigerian National Petroleum Corporation
(NNPC), Dr. Maikanti Baru, Tuesday in Abuja, said the decision to import
crude oil and LNG from Nigeria was informed by the need to bridge the
current supply gap being experienced in Hungary.
“Hungary depends on oil importation to
serve its energy needs as the country is non-oil producing. We want to
diversify our sources of crude oil and LNG import and we are considering
purchasing these products from Nigeria,” Ambassador Ternak stated.
He said the Nigerian crude oil would be of great help to Hungarian Refineries involved in large scale commercial refining.
The Hungarian envoy stated that Nigeria
could also leverage on the bi-lateral relationship with his country by
engaging the services of Hungarian firms that specialize in repairs,
maintenance and building of refineries as well as medical services.
He said that Hungarian universities with
many years of oil and gas engineering expertise, could assist Nigeria
in the areas of capacity building of oil workers.
In his remarks, the NNPC GMD, Dr.
Maikanti Baru, stated that the Corporation had commenced tendering
process for the selection of the 2018 crude oil off-takers, adding that
Hungarian companies could utilize the opportunity by participating in
the exercise to maximize value from direct purchase, rather than going
through a third party.
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“If
you don’t participate in the tendering process, you would have to buy
the products from one of the traders. However, if you participate with
companies and refineries that meet our requirements, they could be
shortlisted as off-takers,” The GMD averred.
He explained that Hungary could purchase
LNG through “spot cargo,” an arrangement in which excess production is
given to registered off-takers with the Nigerian Liquified Natuaral Gas
Limited (LNNG).
“Normally, gas business is a long term
business and NLNG is not different, we already have existing 20-year
contract that will expire by 2022. Nevertheless, we have what is called
“spot cargoes”, when there is excess production, and the current
contractors have gotten there share as enshrined in the contract, the
excess production will be given to registered off-takers in the system,”
Dr. Baru averred.
He said Hungarian companies could submit
their profile to NLNG for possible engagement as off-takers of
spot-cargoes after meeting the standard requirements.
The NNPC GMD stated that works on
refurbishment of the Corporation’s refineries through original builders
of the plants had commenced and that the Hungarian firms with requisite
expertise could be considered through subcontracting by the main
contractors.
He said that NNPC through its subsidiary
institution, the Nigerian Leadership Academy (NLA), would look into
possible areas of collaboration with the Hungarian Universities for
in-country capacity building of oil and gas workers.
As part of the Corporation’s
diversification plans, Dr. Baru said the NNPC, which has the largest
medical facilities in the country from a single entity, was trying to
put its 52 clinics across the country into commercial use, starting with
its clinic in Abuja.
He said NNPC would collaborate with
Hungarian and other reputable companies that have proven capabilities to
set-up world-class medical facilities for heart, spinal and brain
surgeries as well as physiotherapy and specialized laboratories services
that can compete globally and save Nigerians the burden of traveling
abroad for treatment.