NNPC pledges 335,000bpd to acquire 20% stake in Dangote refinery

The Nigerian National Petroleum Company (NNPC) Ltd has pledged 335,000 barrels per day (bpd) of crude oil to acquire a 20 percent stake in the Dangote Refinery.

Data sourced from NNPC Ltd.’s newly released audited financial report showed the state-owned company acquired a 20 per cent stake in Dangote refinery for $2.76 billion through a $1.036 funding from Lekki Refinery Funding Limited of which $1 billion was paid to Dangote Refinery and $36 million accounting for transaction costs.

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“The balance of the cost of equity investments made in DPRP FZE, which is $1.76 billion will be paid upon completion of the refinery project starting April 1, 2023 or any other date agreed between the parties (NNPC and Dangote Oil Refining Company Limited) via a combination of a $2.5/bb1. discount (on the official selling price) per barrel on 3oo, ooo barrels per day to DPRP FZE, and 100% of NNPC’s portion of any dividend declared by DPRP FZE throughout the repayment period,” NNPC 2022 audited statement said.

To acquire the $1.036 funding from Lekki Refinery Funding Limited, NNPC said it entered a Forward Sale Agreement (FSA) with Lekki Refinery Funding Limited for the sales of 35,000 barrels per day of NNPC’s future crude oil for the settlement of $1.036 billion (N426.2 billion).

The delivery of crude oil to Lekki Refinery Funding Limited is scheduled to commence in August 2022.

Recall, that NNPC Ltd reserved up to 90,000 barrels of crude for the $3.3bn financing deal it got from the African Export-Import Bank last year.