Three Nigerian Refineries Ready to Produce Petrol as Owners Explain Naira Crude Sales to Dangote
- After Dangote Refinery, about three Nigerian refineries are preparing to begin petrol production
- The publicity secretary of the Crude Oil Refiners Association of Nigeria (CORAN), Eche Idoko, disclosed this recently
- He said the government is currently prioritising the Dangote Refinery in the sales of crude in naira as it is the only one presently producing petrol
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The publicity secretary of the Crude Oil Refiners Association of Nigeria (CORAN), Eche Idoko, said the Nigerian government promised to supply crude oil to the Dangote Refinery, the only refinery producing petrol.
Idoko said during the inaugural meeting with the Nigerian government, the parties agreed to sell crude oil in naira to refineries in phases.
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Three refineries preparing for PMS production
He said the government would start selling to refineries already producing PMS and then extend it to others.
According to the CORAN scribe, no other refinery besides the Dangote Refinery sells petrol.
He, however, stated that three other refineries are working on their plants to produce PMS.
Idoko said refineries such as the Clairegold, Aradel, and Azikel Petroleum Refineries are all working to produce petrol soon.
He disclosed that the refiners have spoken to Dangote Refinery about the proposed crude oil sales in naira scheduled for October and that the company said conversations are ongoing.
Dangote Refinery gets 48 million barrels of crude
Legit.ng reported that the Nigerian government had already earmarked 12 million barrels of crude oil for the Dangote Refinery in October.
The facility received 48.6 million barrels in 10 months from the Nigerian National Petroleum Company Limited (NNPC).
The CORAN official said the Nigerian government would disclose the details of the transactions.
He hinted at the possibility of discounting crude oil prices to the refineries, which might affect petroleum product prices.
He said:
“For instance, are they going to discounts as normal when you are selling crude to international traders? If there is going to be a discount, that will guarantee the reduction in price of petroleum products.”
He stated that the refinery owners also want to know at what exchange rate the government will peg crude sales to the refineries.
FG to start crude oil sales in naira
BusinessDay reports that on September 13, 2024, the technical sub-committe on domestic sales of crude oil in local currency announced that the federal executive council approved the sale of crude to local refineries in naira and subsequent purchase of petroleum products in the local currency.
The committee declared that the NNPC would commence the daily supply of 385,000 barrels of crude oil to the Dangote Refinery, which would be paid in naira.
The development means that the NNPC is now prioritising the supply of naira-denominated crude oil to the Dangote Refinery in the first phase of the deal to impact the domestic fuel supply and boost transparency.
Another Nigerian refinery set to sell fuel
Legit.ng earlier reported that oil marketers visited the Port Harcourt Refinery Company in Rivers state and expressed hope that the facility would start releasing refined petroleum products soon.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) members said the facility’s rehabilitation had been mainly completed.
The IPMAN members said the plant will be ready this month, as earlier speculated by Mele Kyari, the Group CEO of the Nigerian National Petroleum Company Limited (NNPCL).
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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