Buying Crude Oil in Nigeria (off-OPEC)

Nigeria has reached their OPEC quota and can not sell new contracts for crude oil without exceeding its OPEC quota. Regardless, Nigeria has been doing so for many years. It is a very private marketplace.

A case in point: For many years SGS had a contract to do all of the terminal inspections for the NNPC. But they were caught reporting their inspection data to OPEC and were immediately fired, and replaced with INTERTEK.

There is a list of only about  21 registered Sellers: bit.ly/1M2ze5j (read OPEC) of BLCO. 

Nigeria sells (X%: redacted for privacy purposes) of its production (off-OPEC), all through small, invisible private Sellers that have been secretly given the Authority To Sell as Consignees for the NNPC. They all have their own banks, and are required to make cash payments for their sales to a rotating set of banks the NNPC has for the stealth purpose of hidden sales (off OPEC).

In addition, the oil business is a rather cash intensive business requiring large amount of cash that even most large companies cannot get their hands on. So the potential of failure to perform both on the Buyer side and the Seller side is much higher than many other natural resource markets.

We work to assist just a small number of Sellers that are already performing, with other Buyers - and have been doing so for many years. So we know what works and what will not work - what we can do and what we will not experiment with. Because of this, our Sellers will not be pushed into what can not work by 'anxious' Buyers.

Eastern Union Energy serves these Sellers as the marketing arm, mandate and power of attorney (occasionally) to filter through literally hundreds of potential Buyers to find the ones that are most likely to be financially capable and are also agreeable with the our working procedures and discounts.

We tend to see ourselves as solving the Buyer’s problem. To do so we try and find out the Buyer’s needs, and attendant problems at getting product and then solve those challenges. We do this by introducing a safe procedure for the buyer to be able to move forward.

And we would be happy to engage in communication which could lead to your Buyer receiving some of the best feed stock in the world.

 

~Eastern Union Energy