NNPC Supports Dangote Refinery With $1 Billion Loan Backed by Crude Oil
- The Nigerian National Petroleum Company Limited, said it obtained a $1 billion loan backed by crude oil
- This was aimed at making it easier for the 650,000 barrels per day refinery come into service
- The business also arranged the $3 billion Gazelle loan, a move to help stabilize the federation's foreign exchange condition
CHECK OUT: Education is Your Right! Don’t Let Social Norms Hold You Back. Learn Online with LEGIT. Enroll Now!
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Nigerian National Petroleum Company Limited has announced that it obtained a $1 billion loan secured by crude oil to facilitate the commissioning of Dangote Petroleum Refinery, which has a capacity of 650,000 barrels per day.
Source: UGC
In order to help stabilize the federation's foreign exchange situation, the company also facilitated the $3 billion Gazelle loan, according to the statement.
These remarks were made by Olufemi Soneye, the Chief Corporate Communications Officer, during Monday's Energy Relations Stakeholders Engagement in Abuja.
Earlier, the national oil company, in collaboration with Afreximbank, set up a syndicated $3.3 billion crude oil prepayment facility in January 2024.
According to the bank, the transaction was one of the biggest syndicated debts created in Africa and the biggest crude-backed facility in Nigeria.
The spokeswoman noted during the ceremony that these efforts demonstrate NNPCL's commitment to advancing national development partnerships.
He said that under Mele Kyari's direction, NNPC Ltd. had accomplished historic firsts and changed the course of Nigeria's oil and gas industry.
On the support for Dangote, he said,
“A strategic decision to secure a $1bn loan backed by NNPC’s crude was instrumental in supporting the Dangote refinery during liquidity challenges, paving the way for the establishment of Nigeria’s first private refinery.
“This initiative underscores NNPC’s dedication to fostering public-private partnerships that drive national development.”
Soneye also reaffirmed the Port Harcourt Refining Company's dedication to reviving the country's refining capability, calling the company's restart a major turning point in Nigeria's journey toward energy self-sufficiency.
He emphasized that in the face of growing global energy prices, Nigerians now have a cleaner and more affordable alternative energy source in the form of compressed natural gas, which the national oil company has promoted.
Dangote Refinery exports PMS to another African country
Legit.ng reported that the Dangote Refinery and Neptune Oil have announced their maiden petrol export to Cameroon, representing a significant step in regional energy integration and collaboration.
The firms described the shipment as a strategic collaboration to strengthen economic ties between the two countries while addressing rising energy demands in the region.
The two firms are exploring further plans to establish a reliable supply chain, stabilise fuel prices, and create new economic opportunities in the region.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
