According to the Executive Director of the Dangote Group, Devakumar Edwin, the Dangote Petroleum Refinery is already importing crude oil and anticipates receiving its first crude shipment in two weeks.
Edwin stated in an interview with S&P Global Commodity Insights on Monday that the Nigerian National Petroleum Company Limited has committed its crude to other organizations even though the NNPCL trades crude oil on behalf of Nigeria.
The head of the Dangote refinery declined to say which other organizations were receiving crude from the oil giant, but NNPC revealed last month that it had signed a $3 billion crude oil-for-loan agreement with the African Export-Import Bank. The agreement permitted the firm to guarantee the bank’s future oil output as loan repayment.
However, a senior executive of the oil business claimed that preparations were already being made to guarantee that Dangote’s refineries’ crude oil requirements would be satisfied in November.
Additionally, Edwin emphasized that the Dangote refinery’s delayed importation of crude was just temporary because the company would begin receiving supply from NNPCL in November.
Edwin continued by saying that the company will start producing up to 370,000 barrels per day of crude that would result in aviation fuel and automotive gas oil, often known as diesel, in October 2023.
The factory would generate Premium Motor Spirit, or gasoline as it is more often known, by November 30, 2023, according to the head of the Dangote Group.
On Tuesday in Abuja, it was learned that the NNPCL had contracts for the delivery of crude oil with other organizations, but would make sure to provide the product to the Dangote refinery in November.
The national oil company stated in the middle of August that it had obtained a $3 billion emergency crude oil repayment credit from the African Export-Import Bank.
In a succinct statement headed “Relief for the naira: NNPC Ltd secures $3bn emergency crude repayment loan from AFREXIM Bank,” it had previously confirmed the acquisition of the debt.
The signing, which took place today at the bank’s headquarters in Cairo, Egypt, will give the NNPC Ltd. some immediate disbursement that will allow it to support the Federal Government in its ongoing fiscal and monetary policy changes intended to stabilize the exchange rate market.
This demonstrated that the national oil company has honorably fulfilled its promises to other organizations using Nigerian crude.
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