LONDON/LAGOS: Nigeria's state oil firm NNPC has picked 16 consortia for its new crude-for-fuel swap contracts for one year starting in August, sources with direct knowledge of the matter said.

The list includes major Swiss trading firms Trafigura, Vitol and Mercuria, oil major Total as well as large Nigerian traders Sahara Energy, Oando and MRS Oil.

The contracts, known as direct sale, direct purchase (DSDP) are coveted since they are used to supply nearly all of Nigeria's gasoline needs as well as cover some of its diesel and jet fuel consumption.

Two sources said each consortium would receive 20,000 barrels per day of crude oil in exchange for products, making the combined total 320,000 barrels per day of Nigeria's output. The west African nation and OPEC member produced about 1.5 million bpd of crude in April.

The companies were invited on Friday to submit commercial bids, which were due on Tuesday. Those involved in the process said the list of winners was unlikely to change substantially.

A spokesman for NNPC said that the list was still being finalised but did not provide further details.

The new DSDPs will replace those from 2019 which were extended until mid-2021.