Nigeria's NNPC issues 2016 crude oil contracts worth $13.5 billion

(Adds quotes, context)

By Julia Payne and Libby George

ABUJA/LONDON, Dec 17 (Reuters) - The Nigerian National

Petroleum Corporation (NNPC) has issued its 2016 crude oil term

contracts to 21 companies, going directly to international

refineries, trading houses and local downstream firms, according

to a list obtained by Reuters.

The contracts cover 991,000 barrels per day (bpd) of oil,

worth $13.5 billion at current crude oil prices, which is

roughly half of Nigeria's crude oil production of around 2

million bpd.

The list includes refiners such as Spain's Cepsa, Italy's

Saras, India's IOC and ENOC of the United Arab

Emirates, as well as trading houses Trafigura, Mercuria and

Vitol and international oil companies ENI (NYSE: E - news) , Total (Swiss: FP.SW - news)

, Exxon and Shell (LSE: RDSB.L - news) .

The remainder are Nigerian downstream and NNPC trading

companies.

In a statement, NNPC said: "Apart from ensuring

transparency, the companies were carefully chosen based on their

track records and trading experience to ensure that Nigerian

crude cargoes are not left unsold."

The list is pared down from the final 2015 contract list,

which comprised 43 companies and did not include any global

traders. Many of the mostly local companies included then were

criticised by international watchdog groups, such as the Natural

Resource Governance Institute (NRGI), as "unqualified

intermediaries" who added little value.

President Muhammadu Buhari is on a campaign to root out

corruption in the NNPC and oil theft across the nation, which he

assesses at about 250,000 bpd.

During a televised launch of the contract process in

October, when 278 companies submitting bids for crude oil

contracts, NNPC officials promised to slash the number of

winners and conduct business differently.

"Things have changed in Nigeria," said one oil industry

source close to the contract negotiations. "The process of

tendering has been more transparent they want to work with more

reputable companies."

Oil traders said the inclusion of Exxon and Shell was also

unusual.

"It (Other OTC: ITGL - news) is the first time for both," one trader of West African

oil said of direct contracts between Exxon, Shell and NNPC. "It

seems to tie up with the drive to partner with end-users."

NNPC's current managing director Emmanuel Ibe Kachikwu is a

former Exxon executive.

The absence of China's Sinopec (HKSE: 0386-OL.HK - news) , and its trading arm Unipec,

was also notable, as it is a large buyer of Nigerian oil and was

on the 2015 contract list. Oil industry sources said there was

another list of so-called "government" contracts with Nigeria's

major partners yet to come, and many expected the company to be

added at a later date.

On Thursday, Kachikwu told reporters that Nigeria is

producing 2.1 million bpd and aims to boost output to 2.4

million next year.

Contract holder Volume ('000 bpd)

Refiners

Emirates National Oil 60

Company

Indian Oil Corporation (BSE: IOC4.BO - news) 60

Cepsa 60

Saras SPA 60

International Trading Companies

Trafigura 32

Mercuria 32

Vitol SA 32

IOC Trading Companies

ENI Shipping and Trading 32

Totsa SA 32

Exxon Sale and Supply 32

Shell Western Supply and 32

Trading

Nigerian Downstream Companies

Emo Oil & Petroleum/China 45

ZhenHuaOil

Northwest Petroleum and 45

Gas

Forte Oil PLC 45

Oando PLC 60

Sahara Energy Resouce LTD 60

A.A. Rano Nigeria Limited 45

Eterna Oil 45

MRS Oil and Gas 60

NNPC Trading Companies

Calson/Hyson 32

Duke Oil Incorporated 90

Total: 21 991

(Additional reporting by Ron Bousso and Alex Lawler in London,

editing by William Hardy and David Evans)