Osamagbe Imadiyi
The Nigerian National Petroleum Company Limited’s supply of crude oil is running low for the $20 billion Dangote Petroleum Refinery in Lekki, so the refinery plans to import more. According to plant officials, production has increased to roughly 500,000 barrels per day, with the goal of reaching 650,000 barrels per day by June of this year.
Speaking in confidence because they were not authorized to speak to the media, the sources affirmed that the naira-for-crude deal is still in place as instructed by President Bola Tinubu last year, but they insisted that the facility will need to import more crude in order to reach its goal.
The NNPC is apparently having trouble supplying 350,000 barrels per day of the 450,000 barrels of crude intended for local consumption in Nigeria to the refinery with a capacity of 650,000.
Officials stated that, given its present 500,000 bpd production capacity, it is necessary to search outside of Nigeria for the feedstock. They contend that the issue is not that the NNPC cannot provide crude, but rather that the state-owned oil company cannot provide all of the feedstock required by the refinery on a daily basis.
One of the plant’s reliable sources said, “Of course!” when asked if the refinery intends to import more crude now that the NNPC refineries are restarting. This refinery has a daily capacity of 650,000 barrels. Additionally, we are ramping up, as you are aware.”
“It is not that nobody is saying NNPC cannot do it,” another source affirmed. No! However, take a look at what we have. A 200,000 bpd refinery is not what we are. We are talking about 650,000 barrels. We will ramp up to 650,000 bpd by the middle of the year from our current level of 500,000 bpd. You know what it means? Therefore, sourcing crude oil wherever it is available is standard procedure”.
