How MRS Provided NNPC $300 Million to Purchase Chevron Assets For Four-Year Oil Supplies in Return

How MRS Provided NNPC $300 Million to Purchase Chevron Assets For Four-Year Oil Supplies in Return

  • A recent report has revealed how MRS holdings provided $300 million to NNPC to purchase Chevron assets
  • The report said that in return, MRS Holdings would receive four-year oil supplies from NNPC
  • The fund was secured using Bestaf, a parent company of MRS based in the Bahamas to fund the deal

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A Bloomberg report has revealed how MRS Holdings, the oil marketing firm owned by Sayyu Dantata, a relative of Aliko Dangote, aided the provision of cash used by Nigeria National Petroleum Company Limited (NNPC) to purchase two shallow-water oil assets from Chevron Corporation.

The report, published on Wednesday, December 7, 2022, said MRS Holdings have reported losses for three consecutive years to 2020, except in 2021.

NNPC, MRS, Dangote, Oil Deal
NNPC Chief Executive Officer, Mele Kyari Credit: NNPC
Source: UGC

MRS history of losses

The company is a subsidiary of Bestaf Funding Limited, a subsidiary of MRS Holdings based in the Bahamas.

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Bestaf Funding Limited was instrumental in the $300 million dollar funding for the purchase of Chevron assets by NNPC, according to a response to Bloomberg by NNPC’s chief financial officer, Umar Ajiya.

The audited earnings report of NNPC was released in October this year but has been removed from the company’s website.

Per a Premium Times report, the company no longer publishes its financial records.

The deal provides that NNPC pay Bestaf back in oil supplies to MRS holdings over a four-year period by giving the company 8,000 barrels of oil daily throughout the contract period.

The agreement means that MRS Holdings will receive about 9.4 million barrels of oil, excluding weekends, which translates to $737.7 million, going by the current Brent Crude price of &78.5 per barrel, higher than the original sum.

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The Bahamas-based Bestaf does not own a website.

Dangote in a a 20 year deal with Dangote Definery

Bestaf had secured $300 million in the form of a pre-export finance facility from another company, PAC Capital Limited, an investment banking arm of Capital Holdings to help with the purchase of some oil and gas assets with the aim of the acquisition not revealed at the time.

MRS holdings and Petro Holdings allegedly purchased the whole of Chevron’s downstream assets at the time using Corlay SA, Panama registered company.

Mele Kyari, NNPC’s boss had said the the state-owned oil firm entered into a an agreement with Dangote Refinery to supply crude to the refinery for the next 20 years with a right-to-first refusal clause enshrined in the deal.

MRS fingers NNPC over bad fuel in circulation, causing scarcity, Nigerians call for arrest of culprits reported that the management of MRS Oil Nigeria Plc has cleared the air on how the Nigeria Petroleum Company Limited brought bad fuel into the country which is causing scarcity and an increase in the cost of transportation.

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MRS also dissociated itself from reports making the rounds on social media that it is responsible for the contaminated product in Nigeria and the company is a responsible corporate citizen who will not go out of its way to harm other citizens.

According to MRS, the NNPC is the sole importer of PMS into Nigeria and the NNPC, through their trading arm, Duke Oil, supplied a cargo of PMS bought from an International trader. Litsaco and delivered it with Motor Tanker (MT) Nord Gainer.


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