VRA lost ?14bn in a deal with Sahara

According to The Insight, the payment of about ?14bn ($1.7m) in penalties for not lifting crude oil on schedule by the VRA is still shrouded in mystery.

Under an agreement between the VRA and Sahara, the Authority was obliged to pay penalties if it failed to facilitate the lifting of oil on schedule.

Sahara had a separate agreement with Arcadia Petroleum Limited of the United Kingdom for the supply of oil.

As a result of difficulties in the establishment of letters of credit and other administrative problems, the VRA notified Sahara that it could not facilitate the lifting of oil on schedule. The Insight