₦airaland Forum

Mynd44:
A refinery of 650,000 barrels per day needs at least 19.5 million barrels piled up. Nigeria cannot supply Dangote with that volume of crude because we have commitments and agreements to keep to.

Dangote also needs that stash so it it doesn't run out during production. The alternative is to buy and when the tanks are filled, they can start buying just the daily amount.

Don't you wonder why Dangote isn't buying from Ghana or closer countries? Because theu also have agreements to keep to

Dangote said the refinery will start at 350k per day processing not 650k.
Besides, Dangote crude storage capacity is 2.4bn
This your analysis no correct

Mynd44:
A refinery of 650,000 barrels per day needs at least 19.5 million barrels piled up. Nigeria cannot supply Dangote with that volume of crude because we have commitments and agreements to keep to.

Dangote also needs that stash so it it doesn't run out during production. The alternative is to buy and when the tanks are filled, they can start buying just the daily amount.

Don't you wonder why Dangote isn't buying from Ghana or closer countries? Because theu also have agreements to keep to

Thanks for the enlightenment. While it is kind of sad that dangote cannot get crude from Nigeria alone, at the end, work must commence

fawaz050:
Buy Crude from Ghana?

I used to think highly of you before. But you fall my hand

650,000bpd? And you think NNPC cannot meet up? At the minimum NNPC, produces 1.2mbpd and putting local needs first means Dangote's request will always be prioritized.


The major problem here is the $3.3bn Crude oil for Cash Agreement with Afrexim, which is a sham by the way. Hence, the NNPC is stuck between:

1. Keeping up with the loan facility agreement with AFREXIM.

2. Selling crude to meet up with FAAC Allocations and

3. Meeting up with local request.


But my question is, why can't NNPC advise Dangote to import from Russia?

The delivery timeline is quicker, their oil is better than WTI and, the exchange rate is better.

Gooood! Deliver us from this people o

You and he are saying the same thing.

He said Nigeria cannot meet dangote demand, while you have explained why nigeria cannot meet dangote refinery demand.

Useless country, useless investments and Evil devilish leaders. Nothing good will come out of them.

It's possible there's a trade agreement, what's important is balance of trade ... We should also find something to sell to them .... moreover feedstock is important for smooth running of industries.

imam07:
all these nah lie. This is a way of suffering Nigerians. How come when we don get refinery Nigeria no con get crude to supply. How come united state wey no dey drill crude dey supply country wey get crude oil. Abi this thing no sound funny to you. They moment dangote get refinery I heard Nigeria doesn't have enough crude to supply dangote. Did d govt or dangote let Nigerians know this before dangote started his refinery.

USA is the world's largest producer of crude oil.

Kukutenla:
Dangote said the refinery will start at 350k per day processing not 650k.
This your analysis no correct

he’s referring to the production capacity per day of the refinery not their plan.

fawaz050:
Why can't we just import from Russia?

The distance and exchange rates are better

Do we know what we're doing at all?

1. Most Russian crude is sour. Dangote refinery is configured for sweet crude.

2. That would put dangote in the line of Western sanctions machine.

razzydoo:
he’s referring to the production capacity per day of the refinery not their plan.

Na wa o
Is he part of the planners?
The owner is telling you how he intends to run his refinery you're talking about audio production capacity.
Did you arrive at 650k by yourself? Was it not what you're told?
The same dude who told you that is now telling you he's starting with 350k yet you're sticking with 650k announced. How does that make sense?

From highest exports to highest imports ,BRILLLLLLIANT! APC robbers are the bestest

razzydoo:
he’s referring to the production capacity per day of the refinery not their plan.

Even then, the chap you quoted is correct. Dangote is refining at half capacity to begin with. That's what the plan was from the word go

nairalanda1:
1. Most Russian crude is sour. Dangote refinery is configured for sweet crude.

2. That would put dangote in the line of Western sanctions machine.

Why should Nigeria be afraid of Western sanctions at the dearth of our economy ?

Kukutenla:
Na wa o
Is he part of the planners?
The owner is telling you how he intends to run his refinery you're talking about audio production capacity.
Did you arrive at 650k by yourself? Was it not what you're told?
The same dude who told you that is now telling you he's starting with 350k yet you're sticking with 650k announced. How does that make sense?

You still don’t get it. Yes the owner has plans but the capacity of the infrastructure is known. Yes or no?

nairalanda1:
You and he are saying the same thing.

He said Nigeria cannot meet dangote demand, while you have explained why nigeria cannot meet dangote refinery demand.

I kuku know. But he missed the main point. I just wanted to add a little clarification.

razzydoo:
You still don’t get it. Yes the owner has plans but the capacity of the infrastructure is known. Yes or no?

Capacity known by who? Na wa o.
So you know for a fact that the refinery has 650k capacity?
The owner is telling you 350k is the capacity it will start with!! Don't you get it?
Is it that you don't know how shylock business leaders operate?
Besides, if he's starting with 350k, you friend is making calculations based on 650k. How does that make sense with the reality on ground?

imam07:
nothing to educate someone. This is pure stupidity on Nigeria govt. This common sense. What rubbish u wan educate here. A crude producing country buying crude from not oil producing country. This is pure madness. Try to educate anyone here nah foolishness. Why Saudi or Kuwait no dey buy crude from other countries. Imagine a country wey dey produce crude for more than 50yrs now importing crude. This country is fluke. Nah all tribes cause Nigeria problem.

I don't blame you. It's Nigerias education system that I blame. Continue to wallow in your ignorance and foolishness!

Mandate1:
educate us sir.

I am actually angry how contemporary Nigerian youth display their low level of thinking. The more graduates we have the less education there is. Until we redesign our education system we are in big trouble. No critical thinking, only cramming to pass exams.

Story all times

Chinkoalhaji34:
Wow! Glad to hear that Nigeria is finally nearing its OPEC quota and increasing oil production. This could help with the foreign exchange crisis.

was that what led to foreign exchange crisis in the first place?

Max24:
Why not simply ask people to educate you on why Dangote had to import crude that Nigeria has?

pls educate us on "why Dangote had to import crude that Nigeria has".

fawaz050:
Why can't we just import from Russia?

The distance and exchange rates are better

Do we know what we're doing at all?

who are the "we"?

na you and dangote get refinery?

fawaz050:
Why should Nigeria be afraid of Western sanctions at the dearth of our economy ?

Because we are effing dependent on the US led western hegemon.

Too dependent

Max24:
I don't blame you. It's Nigerias education system that I blame. Continue to wallow in your ignorance and foolishness!

mumu like u. Do u think it is only school u can get sense. The education we all have here in naija, what influence does it hv on our economy, tech and so on compare to d Chinese or Indonesians. Idiot like u dat do not see foolishness in what d govt is putting on us. A country producing crude is importing crude from a non oil country. Does dat make sense to you? U came here defending rubbish. Nah only you go school? I am from South west and if I see d govt is not doing what is right, it doesn't mean I should not condemn them. I am not a sycophant who can come out to say the truth. U mumu con come here dey talk of education. Buhari dat ruled us for 8yrs. Shay nah his certificate put him there. Little talk like this, mumu like u go dey prove like nah only you go school. Go to your family members to prove yourself.

nairalanda1:
USA is the world's largest producer of crude oil.

in what year? I can't find them in d current statistics

nairalanda1:
Because we are effing dependent on the US led western hegemon.

Too dependent

You're beginning to sound anti-capitalist
Stay your lane
Leave that to us!

Kukutenla:
You're beginning to sound anti-capitalist
Stay your lane
Leave that to us!

The comment you quoted is called facing reality

imam07:
in what year? I can't find them in d current statistics

Oh my gawd!

List of countries by crude oil production

https://en.m.wikipedia.org/wiki/List_of_countries_by_oil_production

USA is number one at 12million barrels per day

Has been like that for over ten years self.

nairalanda1:
Oh my gawd!

List of countries by crude oil production

https://en.m.wikipedia.org/wiki/List_of_countries_by_oil_production

USA is number one at 12million barrels per day

Has been like that for over ten years self.

alright

fawaz050:
I think the 1.2mbpd is net of all contractual commitment with other JVs.

Yah I know that buh part of the crude given to afremix is paid by nnpcl alone. I'm sure shell did not agree to constantly supply crude to dangote refinery so the only excuse the federal government had was to get a loan from afremix. The loan was very suspicious besides shell is no longer operating onshore that is why we have a huge drop on oil output

gaby:
Story Story...

Don't be surprised to find out Dangote has exported and sold the rumored crude oil shipment he received from NNPC.

The guy man don locate better oil business without even lighting up his refinery.

Bros Dangote got a government-backed license for official oil bunkering....lol

You can imagine a crude oil laden vessel pulling out from Dangote's jetty under the guise that it just did a delivery and heading back to base...use your tongue count your teeth...

💯

nairalee:
A 15 year old boy asked me last month

"But bros shebi u said one of the problems we have in Nigeria is that we had no refineries. So why is it that with Dangote refinery dollars is going high and fuel is still expensive"

Naso I begin speak English o

Nigeria circumstances is beyond economist analysis, all economics does not work in Nigeria