Liberia to resell 20,000 bpd of Nigerian oil
Thu Jul 22, 2010 11:12am GMT
MONROVIA (Reuters) - Liberia has signed a one-year oil supply contract with OPEC-member Nigeria that will allow it to take 20,000 barrels of Nigerian crude per day and resell it at a profit, the government said late on Wednesday.
The West African state, still recovering from a 1989-2003 civil war that left its infrastructure in ruins, has no oil production or refining capacity but is hoping drilling efforts offshore will eventually find reservoirs.
"This manifestation of assistance will enable the (Liberian) government to accrue about $120,000 per month. This additional revenue will be used for the national reconstruction project," the director of Liberia Petroleum Refining Company, T. Nelson Williams, said in a statement issued late Wednesday.
Despite its name, state-run LPRC has no refining facilities.
Oil trading company Sahara Energy Resources Ltd will manage the contract between Liberia and Nigeria, sub-Saharan Africa's biggest oil producer, according to the statement.
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