Nigeria will now have a ready market for some of its crude oil production in-country as the Nigerian National Petroleum Corporation Limited, said it will be supplying 300,000 barrels daily to the Dangote Refinery set for commissioning next week.
NNPCL Group CEO, Mele Kyari, in a brief remark at the Nigerian Oil and Gas Opportunities Fair 2023 which began in Bayelsa yesterday, 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 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.
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 1 million barrels per day, falling behind African peer Angola.
Oil production in 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 corporation’s partners “are not putting money in because they need guarantees 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.
Nigeria had long relied on imported refined petroleum products, resulting in economic vulnerability and dependence, NESG said the Dangote Refinery and Petrochemical Company aimed to change this paradigm.
With its extensive capacity, the refinery has the capability to meet 100 per cent of Nigeria’s domestic demand for all refined products. This includes 57 million litres per day of gasoline, 27 million litres per day of diesel, 11 million litres per day of kerosene, and nine million litres per day of aviation jet fuel.
Furthermore, the surplus production of these products allows for potential exports, positioning Nigeria as a significant player in the global energy market.
By producing refined products domestically, the Dangote Refinery and Petrochemical Company strengthens Nigeria’s energy independence and security.”
It added, “The integrated power plant within the refinery has a capacity of 435 MW, which exceeds the total power requirement of Ibadan Distribution Company (Disco).”
According to the group, this not only ensures a stable supply of petroleum products but also contributes to the economic development of multiple states in the region.
The reduced reliance on imports, the group argued, shields Nigeria from the effect of volatile global oil prices, further fortifying the country’s energy security.