Dangote refinery to get additional 17.8mb oil – NNPC

• Published On: 05 September 2024 at 15:38

Adedapo Segun, Vice President of Downstream at Nigerian National Petroleum Company Limited, announced that the Dangote Refinery will receive an additional 17.8 million barrels of crude oil between September and November.

Segun revealed this during an interview with Arise TV's morning show on Thursday.

This move is part of the federal government's strategy to increase domestic petroleum production.

To date, NNPCL has provided the refinery with 30 million barrels of crude oil to start operations.

Earlier this week, Dangote Refinery, led by Group CEO Aliko Dangote, announced that it is ready to begin releasing PMS to the market.

Segun stated that 6.8 million barrels from seven cargoes will be delivered in September, with an additional 11 million barrels scheduled for November.

He also explained why NNPCL remains the sole importer of PMS in Nigeria, citing market conditions that have hampered independent marketers due to forex liquidity issues and a pump price that is lower than the landing cost.

Contrary to reports that Dangote Refinery will only sell to NNPCL, Segun stated that the refinery will eventually supply other marketers as market conditions improve.

For the time being, NNPCL will act as a provider of last resort, as required by the Petroleum Industry Act.