Nnpc To Supply 6 Million Barrels Of Crude Oil To Dangote Refinery In December
The Nigerian National Petroleum Company (NNPC) Limited has confirmed that it will allocate six million barrels of crude oil to Dangote Refinery in December 2023, as part of its efforts to boost domestic refining and achieve energy security in the country.
The NNPC and the Dangote Refinery are expected to sign a sales and purchase agreement (SPA) in the coming weeks, formalising the deal that is based on a willing buyer and willing supplier principle.
Sources close to both parties told TheCable that the deal is purely on a commercial basis and without any discount or concession.
The Dangote Refinery, which was inaugurated by former President Muhammadu Buhari in May 2023, has a capacity of 650,000 barrels per day (bpd), making it the largest single-train refinery in the world.
The NNPC acquired a 20 percent minority equity stake in the refinery in August 2021, in a strategic move to ensure national energy security and diversify its portfolio.
The national oil company had initially announced that it would supply 300,000 barrels of crude oil to the refinery, but later increased the volume to six million barrels, following the successful completion of the refinery’s commissioning and testing.
The NNPC said the supply of crude oil to the Dangote Refinery and other domestic refineries is in line with the provisions of the Petroleum Industry Act (PIA) 2021, which mandates the national oil company to fulfil its domestic crude oil supply obligation.
The NNPC also expressed its commitment to support the Dangote Refinery and other private refineries in the country, in order to reduce the importation of petroleum products and create more value for the Nigerian economy.
