NNPCL To Slash Crude Oil Supply To Dangote Refinery As Old Plants Reopen

A report suggests that the Federal Government may reduce its crude oil supply to the Dangote Petroleum Refinery, scaling back from the current allocation of 300,000 barrels per day.....KINDLY READ THE FULL STORY HERE▶

According to Punch, this reduction is part of adjustments under the government’s naira-for-crude initiative, triggered by the reactivation of the Warri and Port Harcourt refineries. These refineries, which together operate at a capacity of approximately 135,000 barrels per day, could lead to a cut in crude supply to Dangote Refinery, unless there is a surge in Nigeria’s oil output.

Managed by the Nigerian National Petroleum Company Limited (NNPCL), both the Warri and Port Harcourt refineries recently resumed operations after being sidelined for years. Sources indicated that the planned reduction in crude oil to Dangote’s refinery is aimed at ensuring equitable crude distribution among all local refineries.

An insider commented, “It’s clear that crude allocations to Dangote and other local refineries will be reduced as more refineries come back online. Old Port Harcourt is operational, new Port Harcourt is nearing completion, and Warri resumed last week.”

The Lekki-based Dangote Refinery, valued at $20 billion, had initially been allocated 300,000 barrels per day from the 450,000 barrels approved by the government. However, with the reactivation of additional refineries, this allocation is expected to decrease, with the total crude supply to local refineries now being distributed more evenly.

The source added, “The only solution to avoid further cuts is a significant increase in oil production, which the government is working hard to achieve.”