News
In October, 12 million barrels of oil will reach Dangote Refinery – FG
In October, 12 million barrels of oil will reach Dangote Refinery-FG
Aliko Dangote, the CEO of Dangote Refinery, confirmed this during an interview with Bloomberg TV. This oil supply is part of a deal with the government, allowing the refinery to produce petrol, diesel, and jet fuel for the Nigerian market.
This agreement is known as the Crude Oil for Naira deal, involving the Dangote Group and the government. Dangote highlighted the importance of the deal, emphasizing energy security and the elimination of fuel queues. In October, the refinery expects to receive about 390,000 barrels of crude oil daily, which will be processed into gasoline, diesel, and aviation fuel, with any surplus being exported.
In October, 12 million barrels of oil will reach Dangote Refinery. FG
Additionally, Dangote mentioned that this crude oil supply will enable 50 to 60% of non-operational filling stations in Nigeria to resume operations. This move will also cut down on the need for shipping fuel, significantly reducing costs. He estimated that this initiative will save around $1 billion in demurrage fees related to ship landings across the continent.
With this agreement, when they receive the crude oil, they will sell it to everyone. This action will revitalize many idle petrol stations, reduce costs, and save over $1 billion in demurrage fees.
The Dangote Refinery, which began producing Premium Motor Spirit (PMS) in August, has already delivered its first batch of petrol to the Nigerian market. It’s the first facility of its kind in Nigeria after years of relying on imported fuel. The refinery aims not only to meet local demand but also to refine fuel for export to neighboring countries. Initially, the Nigerian National Petroleum Corporation (NNPC) Limited will be the main buyer, distributing fuel to various marketers nationwide. Dangote assures that the refinery has the capacity to end Nigeria’s reliance on imported fuel soon.
