NNPC Reaches Agreement to Supply Dangote Refinery Crude Oil for 20 Years

• NNPC has struck a deal to supply Aliko Dangote's refinery crude oil for twenty(20) years
• The deal NNPC believes will help Nigeria's oil stays relevant as countries transition to clean energy
• NNPC is also hoping the mouthwatering deal will help Nigeria ends petrol importation

The Nigerian National Petroleum Company Limited has reached an agreement with Dangote Refinery to supply crude oil for 20 years.

DailyTrust reports that the agreement gives NNPC the right-of-first refusal to sell to Dangote.

NNPC believes the agreement will guarantee Nigeria's oil stays relevant as countries transition to clean energy.

The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, said this on Tuesday in Abuja, PremuimTimes reports.

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He said:

"NNPC owns 20% of Dangote Refinery and has first right of refusal to provide crude oil to the plant.

"However, we anticipated this energy transition difficulty." That implies we have locked in the ability to sell crude oil for 33,000 barrels minimum by right for the next 20 years, as well as access to 20% of the output from that plant."

Kyari further stated that the Dangote Refinery will begin production by the middle of next year and will be capable of generating up to 50 million litres of fuel.

He added:

"The combination of that plus our ability to reopen our refinery will result in no petroleum product imports into this country next year." "There would be no imports into this nation next year."

"This is quite useful. When we finish our refineries and the Dangote plant, there will be additional little projects, such as the construction of tiny modular condensate refineries. If that happens, which we are extremely certain will happen, this country will become a net exporter.

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"It will serve as a center for the export of petroleum products outside the West African sub-region." This will occur. By the middle of next year, the supply flow will have changed. By the middle of next year, you will not require the importation of petroleum products into our nation."

Petroleum minister reveals Buhari's position on the removal of petrol subsidy

Earlier, Legit.ng reported that the minister of state for petroleum, Sylva, reacted to reports of President Buhari's plan to remove the subsidy on petrol.

Sylva, during this week’s edition of Channels Television’s Newsnight, revealed that Buhari is not in support of the removal of subsidy on petrol at this time.

According to him, the complete removal of subsidy is not on the federal government's plate, saying they plan to complete consultations before coming out with a clear policy direction on the matter.

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Source: Legit.ng