The Lagos-based mega Dangote refinery has accused the Nigerian Nationwide Petroleum Company (NNPC) of failing to fulfill its crude oil provide obligations underneath the naira-for-crude settlement.
Edwin Devakumar, the Vice President of the Dangote Group, disclosed this in an announcement reported by Reuters.
Devakumar defined that the nationwide oil firm had dedicated to supplying the refinery with a minimal of 385,000 barrels per day (bpd) underneath the crude-for-naira deal.
Nonetheless, he alleged that the NNPC is falling in need of this dedication.
In response to Reuters, Devakumar characterised the amount of crude at present equipped by NNPC Restricted as “peanut,” although he didn’t specify the precise quantity.
“We’d like 650,000 barrels per day, and NNPC Ltd agreed to produce a minimal of 385,000 bpd, however they don’t seem to be even delivering that,” Devakumar acknowledged.
Dangote resumes importation of Crude from the US
In an earlier report, Nairametrics noticed that the $20 billion Dangote Refinery has resumed importing crude oil from the USA after a three-month pause.
- The refinery reportedly bought roughly two million barrels of WTI Midland crude from Chevron Corp., in accordance with nameless sources acquainted with the transaction.
- The cargo Is scheduled to reach on the 650,000 bpd petrochemical plant in Lagos subsequent month.
- Transport data reveal that Chevron contracted the supertanker Azure Nova to move the crude from the US Gulf Coast to the refinery, with loading anticipated round December 5.
- Whereas the explanations for the return to US imports stay unclear, a current report by Sparta Commodities means that decrease delivery prices might have made US oil extra aggressive in Europe.
Backstory
Nairametrics earlier reported that on July 29, the Federal Govt Council accredited President Tinubu’s proposal to finish the sale of crude oil by NNPC to native refineries in overseas forex.
- Below the brand new association, the 450,000 barrels of crude oil allotted for home consumption will now be offered in Naira to Nigerian refineries, with Dangote Refinery serving because the pilot venture.
- This initiative goals to stabilize each the pump worth of refined gasoline and the dollar-naira trade fee.
- In response to a current report, Dangote Refinery requires 15 cargoes of crude oil yearly, and the Nigerian Nationwide Petroleum Company (NNPC) will provide 4 of those cargoes.
The Minister of Finance, Wale Edun, later introduced that the transaction would formally start on October 1, 2024.
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