NNPCL not delivering agreed crude volumes – Dangote refinery

The Dangote Petroleum Refinery says the Federal Authorities has not met its goal to produce crude oil to the refinery underneath the naira-for-crude initiative.

It stated the quantity of crude obtained from the Nigerian Nationwide Petroleum Firm Restricted is “peanuts” in comparison with the amount wanted to ramp the manufacturing of refined merchandise.

A report by Reuters quoting an interview with the Vice President of Dangote Industries Restricted, Devakumar Edwin, stated the NNPCL hasn’t met the goal to ship a minimal of 385,000 bpd because the graduation of this system in October.

“We want 650,000 barrels per day. NNPCL agreed to provide a minimal of 385,000 bpd, however they aren’t even delivering that,” the Dangote official stated.

To deal with challenges in accessing overseas foreign money, the federal government in July stated it could promote crude priced in naira to native refineries for an preliminary six months beginning in October.

Final month, The PidomNigeria completely reported that 4 cargoes of crude oil had been delivered to the refinery. Knowledgeable sources concerning the native crude sale deal instructed our correspondent that the refinery was nonetheless ready to obtain extra crude oil cargoes.

However lower than two months after its graduation, the plan might have faltered, making the refinery search crude buy from the USA.

The $20bn Lekki-based plant goals to compete with European refiners when working at full capability nevertheless it has struggled to safe adequate crude provides to run optimally.

Whereas Devakumar declined to provide particular figures, he described deliveries from NNPC underneath the scheme as “peanuts”.

Confirming this case, the appearing Government Director of the Crude Oil Refinery-House owners Affiliation of Nigeria, Mathins Obaze, stated Dangote stays the one recipient out of eight operational refineries in Nigeria to have benefited from the naira-denominated crude sale association.

“Members are nonetheless unable to entry crude in naira and are at the moment participating the federal government for a decision,” Obaze stated.

The rationale for the shortfall was not instantly clear. NNPCL didn’t reply to a request for remark.

The Dangote refinery in August urged the oil regulator, the Nigerian Upstream Petroleum Regulatory Fee to implement a rule that compels oil producers to produce native refineries.

NUPRC didn’t reply to a request for touch upon the matter.

Dangote, with a present capability of 425,000 bpd and a year-end goal of 85 per cent operational capability, has turned to worldwide markets for provides.

It bought two million barrels of US WTI Midland crude on Wednesday, its first US crude buy since August, in response to commerce sources and delivery information.

In the meantime, NNPC is pursuing new markets for its crude oil. The corporate was in London on Wednesday in search of time period clients for its new Utapate crude oil grade.