THE NIGERIAN OIL DEAL Sample Clauses

THE NIGERIAN OIL DEAL. In December 1978, Jamaica secured an annually renewable agreement to lift 5.475 million barrels per annum or 15,000 barrels per day of Nigerian light crude. A 90 day credit window was allowed, but was adjusted downward to 60 days and then to 30 days by February 1987. Supplies increased to 20,000 barrels per day in 1990, then to 10.95 million barrels per year or 30,000 barrels per day up to April 2006 before it was suspended owing to „governance‟ issues on the part of the GOJ. Only 40 per cent of earmarked volumes were lifted during the deal. After the first lift to Kingston, the GOJ realized that the Nigerian 33 API gravity8 crude was too light for the PETROJAM refinery, whose configurations were more accommodative of the 23-28 grade. The PCJ was created in 1979 to act as the GOJ‟s official oil contractor and to manage the trading activities. The proceeds built the PCJ Building, bought and renamed ESSO‟s refinery PETROJAM in 1982, funded the activities of the PCJ and early oil exploration campaigns, among other things. Between 1978 and April 2006, PCJ reported net income of US$4.64 from trading Nigerian oil: US$2.2 million on 93 million barrels during 1979-1993, and US$2.44 million on 32.35 million barrels between October 2000 and April 2006. In 2005 the Government redirected the profits from the PCJ to the Consolidated Fund to finance the national budget. 8 API is a measure of crude‟s density.
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