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ABUJA, Aug 26 (Reuters) - Nigeria's state oil company hascancelled its contract for the delivery of crude to thecountry's refineries in Warri, Port Harcourt and Kaduna, it saidon Wednesday.
Oil sales account for about 70 percent of government revenuein Nigeria, Africa's top crude producer, but the country importsmost of the fuel used by its 170 million inhabitants because ofits inefficient, ageing refineries.
"The corporation has cancelled the current contract due toexorbitant cost and inappropriate process of engagement," aNigerian National Petroleum Corp (NNPC) statement said, addingthat the aim is to cut costs and improve efficiency.
Overhauling the energy sector in Africa's biggest economyhas been a priority of President Muhammadu Buhari, who wasinaugurated on May 29 after being elected largely on his pledgeto fight corruption.
NNPC also announced the termination of the offshoreprocessing agreements made in January with Duke Oil Company,Aiteo Energy Resources and Sahara Energy Resources, saying thatit believed the agreements were skewed in favour of thecompanies.
The statement added that a number of mostly local companieshave been approached to bid for new OPA deals, including Oando, Sahara Energy, Calson, MRS, Duke Oil,BP/Nigermed and Total Trading.
NNPC's moves come a day after President Buhari approvedcancellation of crude oil swap deals for refined productsbetween NNPC and oil traders. (Reporting by Camillus Eboh; Writing by Alexis Akwagyiram;Editing by David Goodman)