Naira-based crude sale scheme faltering | NNPC not delivering supply commitment- Dangote refinery

Naira-based crude sale scheme faltering | NNPC not delivering supply commitment- Dangote refinery

 The Dangote Petroleum Refinery says the federal government’s
initiative to sell crude priced in the local currency is faltering, as the
plant is still unable to secure adequate supplies.

 

Edwin Devakumar, the vice-president of Dangote Industries
Limited, spoke to Reuters on Friday.

 

“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 Nigerian National Petroleum
Company (NNPC) Limited 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.

Source: Naira-based crude sale scheme faltering | NNPC not delivering supply commitment- Dangote refinery

 - NigerianEye

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