NNPCL not delivering 385,000 bpd, as Naira-based crude sale scheme faltering
The Dangote Petroleum Refinery on Friday said the Nigerian National Petroleum Company Limited (NNPCL) not delivering the agreed minimum of 385,000 bpd as the initiative to sell crude priced in the local currency is faltering and the plant is still unable to secure adequate supplies.
The vice-president of Dangote Industries Limited, Edwin Devakumar who spoke to Reuters, said, “We need 650,000 barrels per day, (state oil firm NNPC Ltd) agreed to give a minimum of 385,000 bpd but they are not even delivering that,” Devakumar said.
He described the deliveries from NNPCL under the scheme as “peanuts”.
Also speaking, Mathins Obaze, an acting executive director of the Crude Oil Refinery-owners Association of Nigeria (CORAN), said only the Dangote refinery, one of eight refineries in operation in Nigeria, has benefited from the naira-denominated crude sales arrangement.
“Members are still unable to access crude in naira and are currently engaging the government for a resolution,” Obaze said.
On October 5, the federal government said Nigeria officially commenced the sale of crude oil and refined petroleum products in naira — with Dangote refinery focusing on local supply.
A few weeks later, the refinery received four cargoes of crude oil from the NNPC under the naira-for-crude sale agreement.
On November 21, the Lekki-based refinery purchased its first shipment of US oil after a three-month break as the firm sought to increase production.
