• Tuesday, February 27, 2024
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BusinessDay

NNPCL to supply 300,000 barrels daily to Dangote Refinery

No clarity yet on transfer of crude oil proceeds to CBN

Nigeria’s state-oil firm, the Nigerian National Petroleum Corporation Limited, will supply 300,000 barrels daily to the Dangote Refinery set for commissioning in next week.

Mele Kyari, NNPCl Group CEO, in a brief remarks at the Nigerian Oil and Gas Opportunities Fair 2023 which held in Bayelsa on Thursday, said the company took an early strategic stake in the company because it saw the potential.

Kyari said the plan to sell crude to the Dangote Refinery would ensure that they the company would have an assured market for its crude.

The NNPC Limited is entrusted with about 455,000 barrels of crude oil produced in Nigeria which represents the share of Nigeria’s oil production from various crude production arrangements with local and international oil companies.

Read also: Residents face real risk of living near Dangote Refinery

Kyari said that production has declined in the past few weeks due to some production challenges but that efforts were on-going to fix the issues.

Nigeria’s production fell in April to about 1million barrels per day, falling behind African peer Angola.

Oil production in the Nigeria has been plagued by insecurity and sabotage on oil and gas infrastructure in the Niger Delta. This has forced International Oil Companies to halt production from onshore and shallow water fields.

Speaking on the plight of investments in the sector, Kyari said the corporations partners “are not putting money because they need guarantee that it would be safe.”

Kyari said the corporation was working hard to ensure security challenges are tackled. The Nigerian government has had to invite private security companies including one which a former militant, has significant stake.