Oil Crisis Deepens: NNPCL Falls Short On Promised Crude To Dangote Refinery

Oil Crisis Deepens: NNPCL Falls Short On Promised Crude To Dangote Refinery

The Dangote Petroleum Refinery has revealed that the Nigerian National Petroleum Company Limited (NNPCL) has fallen short of its commitment to supply crude oil under the naira-for-crude initiative. According to Devakumar Edwin, Vice President of Dangote Industries Limited, the refinery requires 650,000 barrels per day (bpd) but has not received the agreed minimum of 385,000 bpd since October..…….READ MORE 

Edwin described the crude deliveries as “peanuts” compared to the refinery’s operational needs. This shortfall has forced the $20 billion Lekki-based refinery to turn to international markets, including a recent purchase of two million barrels of U.S. WTI Midland crude.

The naira-for-crude initiative, launched in October to address foreign exchange challenges, aimed to support local refineries with crude oil priced in naira. However, sources indicate that the program is struggling, with Dangote being the only refinery to benefit so far.

Industry experts are now urging regulatory authorities to enforce compliance from oil producers to supply crude locally. Meanwhile, NNPCL is reportedly focusing on securing international buyers for its new Utapate crude oil grade.

The refinery, currently operating at a capacity of 425,000 bpd, aims to reach 85% operational efficiency by the end of the year.

The Dangote Petroleum Refinery has revealed that the Nigerian National Petroleum Company Limited (NNPCL) has fallen short of its commitment to supply crude oil under the naira-for-crude initiative. According to Devakumar Edwin, Vice President of Dangote Industries Limited, the refinery requires 650,000 barrels per day (bpd) but has not received the agreed minimum of 385,000 bpd since October.

Edwin described the crude deliveries as “peanuts” compared to the refinery’s operational needs. This shortfall has forced the $20 billion Lekki-based refinery to turn to international markets, including a recent purchase of two million barrels of U.S. WTI Midland crude.

The naira-for-crude initiative, launched in October to address foreign exchange challenges, aimed to support local refineries with crude oil priced in naira. However, sources indicate that the program is struggling, with Dangote being the only refinery to benefit so far.

Industry experts are now urging regulatory authorities to enforce compliance from oil producers to supply crude locally. Meanwhile, NNPCL is reportedly focusing on securing international buyers for its new Utapate crude oil grade.

The refinery, currently operating at a capacity of 425,000 bpd, aims to reach 85% operational efficiency by the end of the year.

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