NNPCL may begin importation of 110, 000 barrels of crude oil per day from Venezuela or Saudi Arabia to operate the Kaduna Refinery due to come on stream next year.

Also, the Dangote, Bua and other refineries may be forced to import about 1.322 million barrels of crude oil per day amid oil production challenges in Nigeria, existing contracts on crude oil swap as well as other commercial issues.

Currently, the Dangote Refinery, with 650, 000 barrels per day refining capacity, is relying on imported crude, while the Bua Refinery within the South South region would need about 200,000 barrels per day of crude oil from next year. NNPCL is also looking to bring back its 445,000 barrels per day refineries between next month and next year, while the existing modular refineries will require 27,000 barrels per day.

Nigeria has been struggling to sustain its crude oil production. The country currently records 113.52 million barrels shortfall in meeting Organisation of Petroleum Exporting Countries (OPEC) output quota. That loss alone is about $8.9 billion in the first seven months of 2023.

While OPEC’s production quota allocated to Nigeria stands at about 1.742 million barrels per day, figures from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that output has been averaging about 1.1 million barrels.

The Nigerian Upstream Regulatory Commission is currently dragging oil producers in an attempt to enforce Section 109 of the Petroleum Industry Act (PIA), which introduced Domestic Crude Supply Obligation (DCSO) to Nigeria’s oil industry to ensure domestic refineries are not starved of crude oil supply.

Although the regulator is threatening a fine of $10,000, a penalty of 50 per cent of their fiscal price per barrel of crude oil not delivered to refineries and denial of export permits, many of the crude oil producers are worried over commercial issues that may come up in such a transaction.

Renowned energy expert, Dan Kunle, said crude oil importation would not be ruled out next year for NNPCL-owned refineries because the daily local production is being hampered by poor investment.

“As long as the Federal Government continues to hold controlling shares in all the petroleum companies in Nigeria, there will be no crude oil and gas. Once the assets are transferred to private sector investors, the industry will shape up,” Kunle said.

Energy economist, Prof. Wunmi Iledare, stated that the coming on stream of the Kaduna Refinery and others was gratifying.
According to him, refineries are designed for a crude oil type and product yields, therefore, the Kaduna Refinery, being designed for a heavy crude type, would need import from Venezuela and Saudi Arabia for bitumen and heavy fuel, which are for industrial use.



https://guardian.ng/news/kaduna-dangote-bua-refineries-may-source-crude-oil-from-abroad/

We are watching keenly, and buying dollars because these people are not honest

Dollar will be selling for 7k next year

Niger Delta people will know the real meaning of hopelessness soon.

😂😂😂😂😂😂😄 Nigeria to import crude oil. While they export crude.

People are really mad here

Please before I vent my anger in ignorance, why do we have to import crude oil when we produce it locally.

can't we prioritize local supply to our local refineries over external supply? Or is it obligatory to supply external for the sake of dollars?



Tinubu, a bad man with good intentions.

Venezuela crude that has sulphur galore?

Okay.

ShobayoEmma:
Please before I vent my anger in ignorance, why do we have to import crude oil when we produce it locally.

can't we prioritize local supply to our local refineries over external supply? Or is it obligatory to supply external for the sake of dollars?

Tinubu, a bad man with good intentions.

Buhari has used our future crude production to borrow money. He has blocked all avenues for successive governments to prosper. He is holding us all by our blokos.

Reference or link pls

Good news for Agbadorians

Zooposki:


Buhari has used our future crude production to borrow money. He has blocked all avenues for successive governments to prosper.

But I though they claimed discovery of crude in the north. Even if you want to borrow can't they use the crude in a particular state to borrow and feed the new refineries with crude for another newly nuscovered state

Except they are lying ......

Tinubu needs to give buhari the abacha treatment

Zooposki:


Buhari has used our future crude production to borrow money. He has blocked all avenues for successive governments to prosper.

That is a good opportunity to diversify

As for Buhari borrowing, oil price was low for most of his regime. ( Nigeria is too big in size, so we need oil to be above 100 a barrel before we can see adequate money, otherwise we got to borrow).He had to borrow. Where he erred was in not aggressively diversifying the economy, not fighting corruption or ending wasteful subsides

But as Tinubu dey spend millions on yacht and cars, am not too optimistic. Anyway, it pays not to be optimistic about any naija government

OneCandleAway:


But I though they claimed discovery of crude in the north. Even if you want to borrow can't they use the crude in a particular state to borrow and feed the new refineries with crude for another newly nuscovered state

Except they are lying ......

Lol. It is one thing to discover crude oil up north, it is another to discover it in commercial amounts and it even takes time to get up to the level needed

Anyway,NNPC has plans for the Kolmani field in Bauchi and Gombe. Which might take some time

https://www.reuters.com/business/energy/state-owned-company-starts-oil-drilling-field-northern-nigeria-2022-11-22/

I can now see that apc is the devil. So Nigeria is now importing crude from Venezuela.

Please why is Nigeria still in existence

ubest1:
All these are evil strategies by ur so loved politicians so that fuel price won't come down

Fuel price is not going to come down to below 200 naira.

At the end , when the refineries are running,they will be manned by ordinary Nigerians ,who want to be paid decent salaries

If the refineries are not making enough of a profit, nothing like decent salaries. Many of the workers would jakpa.

Remember that dangote refinery, nnpc refinery are competing against global market not Nigeria market

Subsidy just prevents making of profit,because at a point the cost of subsidy rises above what can be sustained by govt

Can’t we just increase production instead of importing crude that we have naturally? How do we save forex if we start importing crude again?

seunmsg:
Can’t we just increase production instead of importing crude that we have naturally? How do we save forex if we start importing crude again?

I laugh each time your people are saying that the dollar is overpriced in Nigeria.

kettykin:
I can now see that apc is the devil. So Nigeria is now importing crude from Venezuela.

Please why is Nigeria still in existence

We are in this situation because for over 40 years we lied to ourselves that fuel could cost around one fifth of what it actually cost.

No profit was made, subsidy money fuelled corruption, looting and worsened the national debt and made refineries bad.

Ghana ,Niger, South Africa have working refineries because they sell fuel at a profit.

We are not Libya or Saudi that produces more crude than we do and has a much smaller population which means they have better revenue per capita which means they can afford subsidies.


Yes, the APC government too is responsible as well. In 2012 we could have ended this mess. Yes, even some of us who did not like the PDP govt of the time could see the sense in what GEJ was trying to do. But no, we gat to let the poor breathe


Moral, you cannot beat the cost of production. You must sell above it, or problem results. The Commies learned the hard way.

seunmsg:
Can’t we just increase production instead of importing crude that we have naturally? How do we save forex if we start importing crude again?

We can't because in 2012 you guys came out and stopped subsidy removal

If we had removed subsidy then, by now the oil sector would have had enough profit to refine and improve production

But your master Tinubu joined and led the calls for subsidy retention

Here we are. Actions have consequences. Next time remember that not everything is politics

successmatters:


I laugh each time your people are saying that the dollar is overpriced in Nigeria.

If we want more dollars we have to export manufactured goods and services.

nairalanda1:


If we want more dollars we have to export manufactured goods and services.

But as it stands, change all your naira to dollars, that's what your leaders are doing right now.

successmatters:


But as it stands, change all your naira to dollars, that's what your leaders are doing right now.

Which everyone has been doing for as long as I can recall.

Nigerians always want a strong currency. And the fact is except for the 1970s when oil prices were sky high, and the us was more dependent on Nigerian oil , we have always had a weak currency because we don't do what strong currency countries do, export manufactured goods and services

The problem with oil is that the price of oil cannot be controlled by us. We can control prices ofwhat we make to our advantage

Zoo people

You will see a monkey baboon when you see one

Export crude swaps with no remittance - NNpC
steal dollars - thiefnibiuu
Build refinery with fraudulent dollar- Zoo monopoly/Dangote
Import Crude with borr9wed dollars - NNpC
Threaten to Steal Diaspora dollars - thiefnibiuu and gang of thieves
Borrow dollar for toilet paper naira - theifinubu


How can the zoo called Nigeria move forward with Baboons and Monkeys in charge of power

Look how much Naira the CBN is printing everyday and impoverishing working people

And after all these big thief's like APC and thiefnibiuu will go to church and mosque and call God/Allah

Evil

Okay. Let's wait till next year.


I know better though

Another avenue to loot

No sense. Seriously hoping this is hoax.

seunmsg:
Can’t we just increase production instead of importing crude that we have naturally? How do we save forex if we start importing crude again?

Kadoso Mutairu aka seunMilosovichSlobodanGadaffi! Seriously you're an inner caucus member. Quickly go and advise pa Emile O'Corn on this o.

Hahahhaha

Even the crude that fuels their criminal enterprises is gone and set to be imported whereas the ignorant ones believe there is respite on the horizon for the Naira...I laugh in crude oyel.

The way the economy of this contraption will collapse within the next 3 years ehn....even the politicians will start jumping ship when there'll be no more funds to pay their allowances and loot.

The Zamfara Governor already pre-empted his looting by declaring an imaginary cash asset of $5B in a Nigerian bank where he was a director before becoming a governor.

What this means in essence is that he'll be converting all Naira cash accruable to the state into Dollars by mopping up whatever dollar is in circulation at any rate.

This is Nigeria, the jungle where rogues call the shots and the oppressed defend their oppressors on a daily.

Bookmark this...

Politicians are really cashing out from the increment of price of fuel.

What a dysfunctional country. So, Nigeria will import crude oil when we have it in abundance? Then use hundreds of tankers that will run on expensive diesel to move the crude oil to Kaduna?

Don't tell me about pipelines to Kaduna because they don't exist now.

Wonderful

crude is very cheap in venezuela....

amelika is boycotin them....

it can even be gettin crude out of the ground in nigeria is more expensive than buyin it from venezuela....

petrol is practicaly free in venezuela...
them say pay what you can....

i saw the documentary on youtube....

Artiiclebeast:
Hahahhaha

Even the crude that fuels their criminal enterprises is gone and set to be imported whereas the ignorant ones believe there is respite on the horizon for the Naira...I laugh in crude oyel.

The way the economy of this contraption will collapse within the next 3 years ehn....even the politicians will start jumping ship when there'll be no more funds to pay their allowances and loot.

The Zamfara Governor already prompted his looting by declaring an imaginary cash asset of $5B in a Nigerian bank where he was a director before becoming a governor.

What this means in essence is that he'll be converting all Naira cash accruable to the state into Dollars by mopping up whatever dollar is in circulation at any rate.

This is Nigeria, the jungle where rogues call the shots and the oppressed defend their oppressors on a daily.

Bookmark this...

olodo south east....

better concentrate on your biafra....
you people are not useful for anything else other than makin noise....

tsdarkside:


olodo south east....

better concentrate on your biafra....
you people are not useful for anything else other than makin noise....

Olodo rabata

Nigeria consists of just South West and South East.

How hollow can a skull and brain get.

Tueeeh

I sheet and pee on your head.