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Dangote Refinery Targets 100% Nigerian Crude Supply by End of 2025 — Bloomberg

Fola Badmus2 months ago2 months ago23 mins

Africa’s largest oil refinery, the 650,000-barrel-per-day Dangote Refinery, is poised to fully transition to sourcing its crude oil exclusively from Nigerian producers by the end of 2025, according to a report by Bloomberg. The refinery, which is already processing 550,000 barrels daily, received 53% of its crude from local sources in June, while the remaining 47% came from international suppliers including the U.S., Brazil, Angola, Ghana, and Equatorial Guinea. Devakumar Edwin, Vice President of Dangote Industries Ltd., told Bloomberg that the transition to 100% local sourcing is underway as several long-term foreign contracts are set to expire. “Personally, and as a company, we expect that before the end of the year we can transition 100% to local crude,” Edwin said during a recent interview at the Lagos-based facility. The $19 billion refinery, inaugurated in May 2023, is seen as a strategic solution to Nigeria’s long-standing reliance on fuel imports. Although Africa’s largest oil producer, Nigeria has historically exported crude for refining abroad and re-imported the finished products—a costly and corruption-prone cycle that the Dangote refinery aims to break. In July and August, Dangote is scheduled to receive five crude oil cargoes each month from the Nigerian National Petroleum Company (NNPC), with each shipment containing nearly one million barrels. Challenges and Outlook The road to full local sourcing has not been without obstacles. Nigeria’s oil sector has been hampered by crude theft, pipeline vandalism in the Niger Delta, and a shift in ownership of oil assets from international oil companies to under-resourced local firms. Despite these challenges, Edwin expressed confidence that improved cooperation between Dangote, local oil traders, and the Nigerian government will stabilize domestic supply chains. A Regional Beacon of Hope During a recent visit to the refinery, ECOWAS Commission President, Dr. Omar Alieu Touray, hailed the project as a “beacon of hope” for Africa, underscoring its significance in driving regional industrialisation and economic independence. The Dangote Refinery, when fully operational, is expected to drastically reduce Nigeria’s import bill, generate jobs, and cement Nigeria’s status as a net exporter of refined petroleum products.

Dangote denies petrol pump prize increase

Fola Badmus8 months ago8 months ago05 mins

Dangote Petroleum Refinery has denied an upward adjustment in the prices of its Premium Motor Spirit (PMS) commonly known as petrol. The company stated this in a statement made available on Sunday. The statement reads; “We wish to clarify that the recent adjustment in our ex-depot price of Premium Motor Spirit (Petrol) is directly related to the significant increase in global crude oil prices. As crude remains the primary input in the production of PMS, any fluctuation in its international price inevitably impacts the cost of the finished product. “At Dangote Petroleum Refinery, we recognise the critical importance of affordable fuel for all Nigerians, and we remain committed to offering the best value with guaranteed quality to our customers. While we have made a 5% adjustment to our ex-depot price from N899.50 to N950 per litre, it is important to note that this increase is considerably lower than the 15% rise in global crude oil prices, which has seen Brent Crude rise from $70 to $82 in a matter of days, in addition to the premium for Nigerian crude (approximately $3 per barrel) in international markets. “Furthermore, Dangote Refinery has maintained the Single-Point Mooring (SPM) ex-vessel price at N895 per litre. “All our partners, including Ardova, Heyden, and MRS Holdings, will offer petrol to Nigerians at a retail price of N970 per litre nationwide. We have absorbed the increased logistics costs to guarantee uniform pricing across the 36 states of the federation and the Federal Capital Territory (FCT). “Dangote Refinery has absorbed approximately 50% of the cost increases in the international oil market. This is due to our unwavering commitment to quality and affordability, as well as the ownership of the refinery by Nigerians, which remain central to our mission. If Dangote Refinery were to pass on the entire increase in the price of crude oil to the market, the retail price of PMS would be approximately N1,150 to N1,200 per litre in some locations, compared to the current price of N970 per litre. “We are committed to providing reliable, top-quality petrol to the Nigerian people at competitive prices. In these challenging times, we continue to prioritise the best interests of Nigerians, striving to shield consumers from the full impact of global price volatility while adapting to evolving market conditions. “We sincerely appreciate the continued trust and support of Nigerians as we strive to deliver the best value for their money and contribute to the development of a self-sufficient economy that is resilient to international price fluctuations. “In the interest of transparency and good governance, Dangote Refinery will commence publishing its ex-depot price, ex-vessel price as well as pump price on a weekly basis so that consumers are not exploited. “We would like to express our gratitude to President Bola Ahmed Tinubu for the introduction of the visionary Naira for Crude Initiative. This groundbreaking initiative has enabled consistent access to high-quality PMS for all Nigerians, while also insulating the Nigerian consumers from the volatility of the global oil market.”

Dangote refinery to IPMAN: NNPC must authorise sale of petrol to marketers

Fola Badmus11 months ago11 months ago03 mins

The Dangote Petroleum Refinery clarified on Thursday that it has not received any payments from the Independent Petroleum Marketers Association of Nigeria (IPMAN) for the purchase of refined petroleum products.