- Nigeria’s state oil firm NNPC Ltd will supply the new 650,000 barrel-per-day Dangote oil refinery with up to six cargoes of crude oil in December to be used in test runs, three industry sources with knowledge of the matter said.
- The refinery, which was financed by Aliko Dangote, the richest man in Africa, would change the way that oil is traded in the Atlantic Basin and eliminate a profitable market for fuels made in the US and Europe, which have long been used to power generators, vehicles, and trucks throughout the continent.
- The refinery is located close to Lagos in the Lekki free trade zone. When it is completely operational, it will enable oil giant Nigeria—which is currently nearly entirely dependent on imports—to become a net exporter of fuels, fulfilling a long-held ambition.
- Six cargoes, or 200,000 bpd, will be supplied in December as part of a one-year deal, according to one of the sources, an anonymous NNPC official, who also stated that amounts in subsequent months would be given “based on mutual agreement and availability.”
- The other sources said about 4-5 cargoes, or at least 130,000 bpd, were planned. A Dangote Group official, who did not wish to be named, said “some of the agreements have confidentiality clauses” without elaborating when asked about the NNPC supply deal.
- NNPC has a 20% stake in the refinery. The refinery began the commissioning process in May this year after running years behind schedule at a cost of US$19 billion, above initial estimates of US$12-14 billion.
Source:
asaaseradio