Dangote Refinery Is Set To Keep Its Promise A Year After Opening - Politics

 

The $20 billion Dangote refinery is set to hit its maximum refining capacity in the coming months, which has been touted at 650,000 barrels per day (bpd).

• Dangote refinery to reach 650,000bpd capacity by June this year.

• Plans to resolve local crude deficit by importing oil from outside Nigeria.

• Debacle with NNPC hindered local production of premium motor spirits (petrol).

Officials at the Dangote refinery recently disclosed that the refining capacity of the facility is currently at 500,000 barrels per day, as they project hitting the 650,000bpd mark by June of this year.

What has been a major barrier between the refinery and its originally intended 650,000bpd capacity is set to be resolved.

The refinery announced that it has plans to import crude from outside the Nigerian oil market, as the supply it currently gets from the country is insufficient.

Should the refinery plug its local crude deficit with imported crude, it is likely to ramp up production to 650,000bpd.

The sources, who spoke in confidentially, as reported by the Punch relayed that the refinery will need to buy additional oil to reach its goal, even if they confirmed that the naira-for-crude contract is still in place as instructed by President Bola Tinubu last year.

Currently, the Nigerian National Petroleum Cooperation (NNPC) distributes between 350,000bpd to 450,000bpd of crude to the Dangote refinery.

“It is not that anybody is saying NNPC cannot do it. No! But you look at what we have. We are not a 200,000bpd refinery. We are talking about 650,000 barrels,” one of the anonymous sources who spoke to the Punch said.

“Currently, we are at 500,000bpd; we will ramp to 650,000 by midyear. You know what it means? So, it is a normal process to source crude oil anywhere it is available.”

Dangote and the NNPC

Last year, the Dangote refinery and the NNPC got into a bit of a debacle as several disputes hindered local production of premium motor spirits (petrol).

The Dangote refinery, which is the first functional refinery of Africa’s largest oil producer in decades was set to alter the Nigerian oil market with an adequate supply of fuel products.

Unfortunately, this was hindered owing to the squabble between the NNPC and Dangote over an adequate supply of crude.

The Dangote refinery accused the NNPC of preventing the refinery from accessing locally produced crude by either selling it over market price, in US dollars rather than Naira, or claiming that it was unavailable.

At the time, the Dangote refinery was compelled to acquire oil from the international market, which included Brazil and the United States, at a high cost.

This led Dangote to speed up his objective of initiating crude production at its two Niger Delta upstream projects in Oil Mining Leases 71 and 72, starting with around 20,000 barrels per day and scaling up further in the first quarter of 2025.

Naira-to-crude

The federal government initiative to sell its crude oil to Dangote Refinery and other refineries in its local currency, the naira, commenced on October 1, 2024.

The naira-to-crude program, which has already begun, denotes that crude would be sold to the Dangote refinery and others in naira, in exchange, the Dangote refinery will deliver PMS (petrol) and diesel of similar value to the domestic market, both in naira.

The Minister of Finance, Wale Edun, confirmed the commencement of this policy in a signed statement on October 5, 2024.
Source: https://africa.businessinsider.com/local/markets/dangote-refinery-is-set-to-keep-its-promise-a-year-after-opening/d05q84n

6 Likes 2 Shares

Re: Dangote Refinery Is Set To Keep Its Promise A Year After Opening 

Comments

Post a Comment

Popular posts from this blog

Dangote: In Celebration Of Egotism, Selective Amnesia, And Revisionism - Politics

Image
  John Dryden, a 17th Century English poet and literary critic, while painting a picture of the unscrupulous nature the politicians of his days stated that “Politicians neither love nor hate”. This description which highlights the emotionless, soulless, treacherous, and decidedly selfish nature of politicians, even till date, can be applied to businessmen. The brazen manner in which they pursue profit at the expense of everything wholesome and noble is comparable only to the shameless way politicians abandon principles in pursuit of power. My rumination on Dryden’s statement in relation to businessmen was prompted by the report of multi-billionaire businessman, Alhaji Aliko Dangote, saying that he did not enjoy any incentive from government while building his $20 billion refinery. When the report first popped up on my phone, my first reaction was that he must have been misquoted. When the news began to appear on many other platforms, I decided to read various versions of it to unde...
Read more

Tinubu decentralizes NCAT, splits campuses into 6 Geopolitical Zones - Politics

Image
  President Bola Tinubu has announced the division of the Nigerian College of Aviation Technology, Zaria, Kaduna State, into six campuses with 1 in each geopolitical zone of Nigeria. SEE THEIR LOCATIONS: 1. Akure (Southwest); 2. Osubi (South-South); 3. Ebonyi (Southeast); 4. Ilorin (North Central); 5. Yola (North-East); and 6. Zaria(North-West). The Ondo State chapter of the All Progressives Congress (APC) shared this development on Wednesday through its official X account. “President Bola Tinubu has decided to split the Nigerian College of Aviation Technology, Zaria–Kaduna State, into six campuses to ensure efficiency, national coverage, and smooth operations,” the post stated . https://thenationonlineng.net/just-in-tinubu-splits-nigerian-aviation-college-into-six-campuses-across-geo-political-zones/ 95 Likes  6 Shares Re: Tinubu decentralizes NCAT, splits campuses into 6 Geopolitical Zones  by  femisplash :  6:45pm  On  Jan 08 You would recall about ...
Read more

FGN Hands Over Ibadan Inland Dry Port To Oyo State Government (Photos)

  Just as Kaduna dry inland port, the city of Ibadan is yet to get its own Ibadan Inland Dry Port as the federal government officially did the handover ceremony to the Oyo State Government. Those in attendance are the Deputy Governor of Oyo State, His Excellency, Moses Alake Adeyemo, The Executive Governor of Oyo State. Sen. Abiola Ajimobi, Honorable Minister of Transportation, Rt. Hon. Chibuike Rotimi Amaechi and Executive Secretary/CEO Nigeria Shippers Council, Hassan Bello during the Handover Ceremony of the Ibadan Inland Dry port (IIDP) Exchange of Letters at Oyo State Governor’s office, Ibadan on Tuesday 21st May 2019. The Oyo State Government and the Federal Government have fine-tuned agreement on the proposed $99,665,626 (N35.9bn) Ibadan Inland Dry Port, which is expected to ease the pressure on the Apapa Seaport and the perennial gridlock on the Oshodi-Apapa Expressway. The agreement was signed by the Governor, Senator Abiola Ajimobi on behalf of the state, while the Transp...
Read more