FG Gives Important Update on Crude Delivery, Supply of Dangote’s Petrol, Port Harcourt Refinery

• Crude oil deliveries to Dangote Refinery and other local refineries are slated to start on October 1, 2024
• Dangote is expected to deliver its first PMS next month, as per information from the Technical Sub-Committee Chairman
• It is expected that Dangote will deliver its first PMS delivery next month, as per information from the Technical Sub-Committee Chairman

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Crude oil deliveries to Dangote Refinery and other local refineries are scheduled to start on October 1, 2024, according to information released by the federal government.

During a Monday meeting in Abuja with the Implementation Committee, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, made the announcement.

A message on the finance ministry's official X (formerly Twitter) page stated that the purpose of the gathering was to assess the status of important projects.

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In order to ensure a seamless implementation, important roles for stakeholders were outlined at the conference.

These included the African Export-Import Bank, Central Bank of Nigeria, Nigerian Upstream Petroleum Regulatory Commission, and Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The post read,

“The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, today led the Implementation Committee meeting on the transition to crude oil sales in naira.

“The meeting reviewed progress on key initiatives, including the upcoming commencement of naira payments for crude oil sales to the Dangote Refinery starting October 1, 2024.”

Dangote PMS delivery

Additionally, according to current agreements, the first PMS delivery from Dangote is anticipated next month, according to reports from the Chairman of the Technical Sub-Committee and Dr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service.

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“We expect”: FG breaks silence on petrol production from Dangote, Port Harcourt refineries

It also said that updates on the Port Harcourt and Dangote refineries had been given, and that beginning in November 2024, there will be a major rise in production.

In order to ensure that the President's directives are being carried out as planned starting in September, the minister emphasized the need of transparency and gave the Technical Sub-Committee instructions to complete specifics and prepare a report.

Remember that on July 29, the Federal Executive Council approved President Tinubu's request that NNPC stop selling crude oil to regional refineries in foreign currencies.

The Federal Executive Council gave its approval to provide Nigerian refineries, starting with the Dangote refinery, 450,000 barrels intended for domestic use in exchange for Naira.

The action is intended to maintain stability in both the dollar-to-naira exchange rate and the refined petrol pump price.

According to research, Dangote Refinery currently needs fifteen cargoes of crude oil each year.

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Dangote refinery set to launch petrol sales, report gives new date

In response, a technical subcommittee headed by the finance minister was established with the goal of creating the legal framework for the naira-based sale of crude oil to regional refineries.

Samuel Oyekanmi, a research and insight associate with Norrenberger Financial Group said,

"The full implementation of Dangote Refinery is a potential growth propeller, however it will take time before we start seeing the full impact on the economy."

NNPC Set Date to Launch $700 Million Gas Project

Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPC) plans to deliver the Obiafu-Obriku-Oben (OB3) gas pipeline project by August this year, driving industrialisation and economic growth.

NNPC’s group chief executive, Mele Kyari, inspected the mega project in Delta State on Saturday, June 22, 2024, and affirmed the imminent completion of the project.

Kyari said that the project would add value to Nigeria upon completion, and about 2.2 billion standard cubic feet of gas would enter the network.

Source: Legit.ng