In the intricate world of international oil trading, where contracts can hinge on the finest details, a new breed of scams is emerging from Nigeria, Africa's most populous nation. Little-known firms, claiming to possess privileged access to Nigeria's highly sought-after sweet crude oil, are offering these resources at discounts so deep that seasoned traders are waving red flags.
According to sources close to the case, spot cargoes of several hundred thousand barrels of Nigerian crude are being marketed with discounts reaching up to $10 million. However, a closer examination of these deals reveals critical flaws, raising suspicions of fraudulent activities reminiscent of Nigeria's notorious financial scams.
The Nigerian National Petroleum Corporation (NNPC), the country's state oil company, has issued a Scam Alert on its website. This alert warns of unsavory characters purporting to be bona fide staff of the NNPC or contractors to NNPC or purchasers of Nigerian crude oil or contractors to the Nigerian government. The alert is a direct response to the proliferation of deceptive practices within the oil sector.
One prominent player in these dubious deals is Severus Commodities Limited, a Hong Kong-registered firm. This company is listed among the sellers claiming to be near the top of a complex sales chain where oil cargoes can change hands multiple times before reaching refineries. Severus Commodities Limited, with registration number 2526948, is headquartered at Room 2, 1st Floor, Block A, Sea View Building, 2-8 Watson Road, North Point, Hong Kong.
The firm is represented by Nikolaos Giannakis, who, according to public records, also claims association with a Greek asset management company under the prestigious Onassis group. This purported connection adds a veneer of legitimacy to the operations of Severus Commodities Limited, potentially luring more victims into the scam.
Industry insiders and compliance experts are advising traders to exercise extreme caution. There are significant irregularities, including inconsistencies in signatures and misrepresented contractual terms, says a seasoned trader who wished to remain anonymous. These red flags suggest a sophisticated scam designed to exploit the high demand for Nigerian sweet crude.
The NNPC's warning serves as a critical reminder for traders to verify the authenticity of any entity claiming to sell Nigerian crude. As financial crimes continue to evolve, the oil sector's susceptibility to such scams highlights the importance of rigorous due diligence and robust compliance measures.