Dangote, Port Harcourt Refinery to compete with others for NNPC’s crude as debt finance increases

• NNPC stated that it has pledged to deliver 221,000bpd of crude oil in order to meet its $5.5 billion debt obligations
• The company further stated that in exchange for a $1 billion loan to finance the acquisition of the Dangote Refinery equity stake
• In its 2023 Audited Financial Statement (AFS), the NNPCL declared a net profit of N3.297 trillion

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

To fulfill its $5.5 billion debt finance commitments, the Nigerian National Petroleum Company (NNPC) Limited said that it has committed to providing 221,000 barrels per day of crude oil.

A $3.3 billion loan for Project Gazelle Forex stabilization, arranged and managed by the African Import Export Bank (AfreximBank), was to be repaid with 90,000 barrels per day, according to data taken from the national oil company's 2023 Audited Financial Statement (AFS).

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The company added that it had pledged an additional 35,000 barrels per day for a $1 billion loan to finance the purchase of the Dangote Refinery equity stake, which has since been fully repaid, and 67,000 barrels per day to service a $1 billion debt for the restoration of the old and new Port Harcourt Refinery..

The report for Projects Brogues and Eagle 2 indicated that 8,000 bpd and 21,000 bpd, respectively, were committed as payment for loans of $0.3 billion and $0.950 billion to support the OML 86/88 Acquisition, which is already fully returned by NNPC E&P Limited (NEPL), and a General Corporate Purpose loan to NEPL.

At the end of the financial year, which ended in December 2023, the NNPCL reported a net profit of N3.297 trillion in its 2023 Audited Financial Statement (AFS), which was made public on Monday.

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Compared to the N2.548 trillion profit in 2022, Leadership reported that this showed a rise of N700 billion, or 28%.

Filling Stations Adjust Petrol Pump Prices Again

Legit.ng reported that filling stations in Abuja, Lagos, and other states have again adjusted their petrol pump prices upwards amid worsening fuel scarcity that has frustrated motorists and commuters.

The price hikes, which vary across regions, have added to the growing burden on Nigerians grappling with the rising cost of living.

Legit.ng observed that motorists were buying fuel at some open filling stations at prices ranging from N750 per litre to as high as N900 per litre, depending on locations.

Source: Legit.ng