CABINET ON Monday approved the award of a contract to Glencore to lift Nigerian crude on behalf of the Government.

The National Contracts Commission had recommended in July that Glencore be given the contract to lift the oil, a job previously done by Dutch company Trafigura Beheer.

Prime Minister Bruce Golding told a post-Cabinet press briefing that the approval of the contract is "subject only" to confirmation from the Attorney-General's department.

Matter of urgency

Under the contract, Glencore will pay the Jamaican Government 25 U.S. cents for every barrel of Nigerian oil lifted and traded on the international market. Trafigura, the firm that held the contract since 1999, paid U.S. 12 cents.

"We took that decision as a matter of urgency so as not to lose the opportunity for the October lifting," Mr. Golding said.

The Trafigura oil deal caused public embarrassment to the People's National Party (PNP) last year while it was in government after a $31 million donation to the PNP was uncovered.