₦airaland Forum

monerozi5590:
Hahahahaha. Calling Dangote a monopolist and all, I already know where he is heading to.

The official barrel per day is what me and you know. Is much more than that.

Dangote did not say NNPC to be supplying crude to him every day. NNPC promised him 300, 000 barrel of crude and not every day.

I understand oil is an international commodities but everyday we keep saying Nigeria should not be dollarise and all. Selling it in Naira to local refineries will even make Naira stronger.

liveLongNprospa:
If he is importing oil for his refinery, why not pay him subsidy and have him supply to the marketers at a lower price.

Now that I think about it, it will probably cost nnpc alot more because Dangote will also bill us for cost of production. Unless they come to an agreement that makes everything alot cheaper than what nnpc pays for imported petrol

“On a final note, the PIA came 20 years late; investments have moved elsewhere… Shell, ExxonMobil, and Agip have left. It’s only Chevron and Total remaining. If we cause too much trouble for them because of Dangote, they will leave as well. Dangote is looking for another monopoly. People should be able to read between the lines”.

Vintage crossfire! Are the figures peddled here factual and correct? What we can deduce from the exchange of fire above is that the Buhari administration ruined the Nigerian economy not only during its tenure and for his successor but also for generations of Nigerians yet unborn! Why, then, is the Tinubu administration reluctant to make full disclosure to Nigerians? Why is it contented with carrying the can for Buhari and his ruinous henchmen and suffering in silence? Why is the same Buhari and his cabals still roaming the street free?

liveLongNprospa:
My guy it's the same question I asked about supply to Dangote.

For me it's about subsidy.
Pay Dangote the subsidy after he brings in oil.
Or pay him some form of subsidy.
The FG really doesn't have alot of moves because I also don't think we can compel IOC's to give him oil especially with our low production

monerozi5590:
I have been following the news. By law they suppose to sell to Dangote and local refineries. They are to prioritise local market first.

Dangote even escalated it to NUPRC and they promised to look into it but we still know those ones are NNPC people.

monerozi5590:
Nope. They are operating in Nigeria and there's law concerning that. They are to prioritise local market first.

NNPC has crude to sell to Dangote. I don't wanna say this again.

It should interest you to note that Nigeria’s daily average crude oil production is about 1.25 million barrels of crude oil per day, given that Nigeria has a 60/40% JV arrangement with the IOCs, save for the now departed Shell with 55/45% equity distribution. Accounting for the PSC, Nigeria should be getting around 750,000 barrels of oil per day. Kindly note that Dangote’s refinery needs about 650,000 per day.

“However, because NNPCL and the Nigerian government have not been funding their share of the cost of producing oil, this volume is always lesser than the quoted amount above. Buhari executed 7 forward sale agreements, that is, he borrowed money and used our crude oil for several years as repayment. A good example is the Afrexim bank loan of $3.3b dollars that Tinubu took last August, the crude oil commitment at about 11.58% interest is 90,000 barrels of crude oil per day.

“Given all these crude oil deductions, Nigeria gets about 200,000 barrels of crude oil per day. This is what Tinubu sells for about $16 million dollars at $80/barrels as the main source of dollars for 213 million Nigerians. Out of this money, there is a backdoor subsidy of about $8m per day. Now, where does Dangote expect NNPCL to get the 650,000 barrels to give him for his refinery?

“Regarding the accusations against the IOCs, they are bending over backward to accommodate Dangote’s requests… IOCs have SPA (Special Purchase Agreement) commitment spanning 10 to 20 years with international buyers; there is penalty for default of these contracts. Despite these constraints, one of the IOCs had to incorporate another trading company in London at the cost of millions of dollars to sell crude oil to Dangote. Dangote’s ship arrived at one of the IOCs export terminals, loaded crude oil but, once again, could not provide an LOC (letter of credit) since 29th June 2024; demurrage is ongoing as we speak. Dangote is asking for an additional $6 per barrel discount and wants to pay in Naira.


“No one will sell crude oil to Dangote in Naira because oil blocks are awarded in dollars, signature bonus are paid in dollars, seismic survey and aeromagnetic survey with gravity data are acquired in dollars, interpretation of the data is 80% dollars, wells are drilled in dollars, production facilities are constructed in dollars… The PIA Act permits payment in Naira or dollars but given my explanations here, who will sell in Naira?

liveLongNprospa:
How difficult is it to track someone on nairaland with police?

seankafor:
Everybody shaa wan cash out this period

The amount of suing and counter suing

https://x.com/Morris_Monye/status/1815764871260033325?t=4jWIyxAVq8-4i9pyT3v1jA&s=19[/quote]This is what I like to see.

If u call me a terrorist or anarchist and I'm not, I will ask u to retract the statement and tender unreserved apology. If u fail to do that, then we meet in court. You should explain to the court with evidence how I am a terrorist or anarchist

liveLongNprospa:
My guy.. Na we argue here about the talk of Dangote having high sulphur in his product as claimed and we were trying to understand why that would be said by an agency when that was old news and the man's sulphur content had gone down even more.
They said his refinery was only 45% ready.

I posted this to counter those lies.
Do I have my bias, yes but I nor fit because of bias see white call am black.
Abi should I not look out for the truth because someone I don't like is been lied against?

liveLongNprospa:
But inside this issue, we have only highlighted the lies told against Dangote.
I don't like Dangote doesn't mean I won't call out the lies told. It's a national discussion.
What are the benefits of Dangote's refinery working as against the demerits?
If nnpc pays Dangote that subsidy and therefore cuts out the fx they use for importation and also ensures he gets 200k of oil, would that save the country financially or not?
That's the important question.

liveLongNprospa:
Lmao.. Now I'm confused as to what you are disagreeing with.
I never said we were closed up.
I said it was extremely expensive to drill or even use an old oil head.
Outside of the expense, we have an unattractive business environment. Investors know that all it takes is one new policy and everything turns upside down.
This is also outside the oil theft in place too and the numerous kickbacks.

That's why we are not having people.

Look at an example below of my point

liveLongNprospa:
But Dangote knows they won't buy from him because at what rate are they going to sell when nnpc is still doing subsidy.

Unless Dangote is saying that nnpc will also pay him subsidy to crash the price when he sells to local importers.
Na that subsidy be the problem for here.
If nnpc stops subsidy today totally, Dangote will have like 80% of the issues solved

liveLongNprospa:
So we agree we have untapped that can meet anything we need.

We also agree that we need alot of money to resuming drilling and no company right now in Nigeria is investing.

What we have is a possible investment for drilling with berger but we don't know when or if it will even be a "Here we go" thing

liveLongNprospa:
Lmaoo.. It's the same thing the farmers are also crying about with this whole opening of the border.
Importing food kills the agricultural industry.

Now look at Dangote as a local business (even if he's the only local refinery we have). Is the government meant to protect him or not?
I also understand that he and FG are part of what landed us in this hot mess especially with the way fx was used and the rules bent.

But as a local business of that magnitude and importance, isn't the government meant to favour him somewhat?
The question is what is the government now doing on their part to help him?

liveLongNprospa:
We have alot of untapped oil.
Infact I recently learnt there's a well that's been burning In the water for a long time with no way to contain it. That's how much oil we have😁
We just have low production that's incapable of meeting our needs.
Ramping up production is sadly very very expensive and companies are not mostly interested.
But let's see what the Berger deal has in place for us

monerozi5590:
By point is NNPC can sell crude to Dangote. They promised to do so before. They are in charge. IOCs or not. NNPC can tell those guys to sell to Dangote according to the law.

GloriousGbola:
no one will import because there s clearly a subsidy. NNPC stations are still selling at n568. anyone bringing in fuel will be at over n1000/litre. a large number of nigerians are content to queue at NNPC for a hour to get fuel at 568 rather than enter mobil for 610 in 10 -15 minutes or for 700 instant.

no one will bring in PMS.

monerozi5590:
I don't know the maturity date neither do I know which benchmark( dollars) was used per barrel. Nigeria is still making revenue (kudi) through crude oil sell.

monerozi5590:
This is Waltersmith modular refenery. One of the licence refineries we have.

monerozi5590:
Anybody can still import but none is importing because they can't. That's the point.

Is Dangote the only one supplying cement/spaghetti, etc to Nigerians?

They are other local refineries alongside Dangote's

monerozi5590:
Is not all our crude na. Crude still remains our major revenue.

monerozi5590:
Now, you know they are the sole importer. I can now rest my case.

monerozi5590:
Just forget this thing you are saying. NNPC are in charge.

Nigeria produce 1.6/7 barrels of oil per day. This is the official figures we know oh. The ones they corner and oil theft is not among oh.

If NNPC want to give Dangote crude, they can. As of last year they promised to sell to Dangote. But all of a sudden, their strategic interest doesn't align again.

monerozi5590:
That link I sent to you is two months ago. NNPC is the sole importer

At a meeting between key oil marketers in the country and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Tuesday to address the issues of incessant scarcity of petroleum products, the NMDPRA chief executive officer, Farouk Ahmed, emphasised that the NNPCL is currently the sole importer of petrol into the country.

This is as the major marketers lamented their inability to import petroleum products, despite having active licences to import

The PIA, which was signed into law in August 2021, was aimed at reforming the country’s oil and gas industry, including the downstream sector. One of the key objectives of the PIA was to encourage competition and attract private investment in the importation and distribution of petrol. However, the reality paints a different picture.

According to industry experts, the NNPC Limited has maintained its stranglehold on petrol imports due to its ability to access foreign exchange. This advantage has made it difficult for independent marketers to compete

Segedinho:
I don't think any sane person would want to risk buying an un-ideal fuel as announced by the NNPC chair


If NNPC repugnant post was about the price being too much, it would have been more logical....

We are yet too get d full gist on while he isnt able to saturate d federation with his fuel or possibly why he isn't being supplied crude at an ideal price..


I read, he grumbled on the price he was going to get Nigeria crude vs imported ones...

Importing crude even when we have surplus seems to be abnormal..


There is a reason we are yet to own a refinery.

larride:
US is one of the highest producer of oil in the world and they still import and EXPORT oil.

I don't understand why some people want Dangote to be the only one calling the shot with his refinery.

If your own oil is cheaper, marketers will buy it over the imported own because they themselves want to make profit and cut cost.

monerozi5590:
You didn't answer any of my question.

PIA was signed into law in 2021. Before then the petroleum market was not deregulated.

Prior to 2021, NNPC are the sole importer of refined petroleum products.

After 2021, NNPC are still the sole importer of refined petroleum products.

There are no marketers importing refined petroleum products anywhere.
https://leadership.ng/despite-pia-petrol-import-monopoly-persists/

There's no new entrants anywhere.

larride:
I don't understand this argument, should NNPC stop importation totally and rely on only Dangote refinery, is that the argument or bone of contention?

Do you think this is reasonable?

iamoyindamola:
https://www.nairaland.com/8162575/soyinka-intend-keep-quiet-tinubus


Shame!
Shame!!
Shame!!!
Abeg who get that got shame meme

monerozi5590:
This is logic and business. Will you allow that kinda of unfair advantage?

Who are the importers of refined petroleum products into the country aside NNPC?

Segedinho:
IMHO.

Dangote refinery would have impacted d country positively in terms of forex and "cut-cost".
Wheater monopoly or otherwise,we have think about its positivity.

We are over-reliant on imports and this has taken us aback...in a bid to maintain balance,we should encourage local satisfaction and exportation with his products.


We can as well begin the fight if and only if his price tag becomes dubious...

monerozi5590:
This is business oh. This is you undercutting local producers.

Let's say you and others have cement factory, will you as a person and the cement industry be happy for the import of cement into the country?

This year we saw how farmers in Europe protested against the import of Ukraine's farm produce into their countries .They protested because it will undercut their own produce.

What Dangote said is very very correct. NNPC importing in large volumes will undercut him and other local refineries. NNPC are still the sole importer of refined petroleum products into the country.