dre11:
•Relief as Nigeria nears OPEC’s renegotiated 1.5m bpd quota



https://www.thisdaylive.com/index.php/2024/03/03/dangote-refinerys-second-crude-oil-shipment-leaves-us-for-nigeria?amp=1

Even as a layman, I can see clearly that there is something deficient or even wrong with Dangote's business model........This refinery is a 650,000 barrels per day refinery! how are they going to keep the refinery running 100% of the time if they are buying 2million barrels on the international market ONLY per month! ( that will barely last 3 days of refining)........even if he gets 2 million barrels per week from NNPC ( Tinubu no gree to sell to Dangote on credit nor in naira)...........that is just 14 days of full production in a month,how is he going to pay back his loans at that rate of production! Dangote may have entered one chance with this his mega project!

For 14 days of production he needs : 14 X 650,000 equals 9,100,000 barrels multiplied (by crude oil price) $84 i.e. $764 million dollars

Dangote needs close to $800 million dollars to service his refinery for only 2 weeks of full production? I wish him well its not easy to be a billlionaire............dangote is heavily over leveraged right now! Tinubu will not mortgage naija's finances to bail him out!

To keep the refinery busy and making money he had better get refiners from all over the world that can use his refinery to process their own crude................there is no fulani uncle to bail him out with our commonwealth! Karma is a bitch indeed!

Max24:

Simply because Nigerias crude has been pre-sold for some years. Some long term customers have pre-bought our crude for some time to come and will expose Nigeria to litigation if we default, so Dangote will only get from Nigeria under two options.
1. Nigeria substantially increases its production capacity which cannot be done overnight.
2. Dangote waits until nnpc,'s contract with some of those customers expires and he takes their place.
So, for now Dangote being a private business has no option but to source for crude elsewhere.
Either way, these are positives and not negatives for us because it simply means there is more demand for our oil which will spur govt to work towards increasing production capacity.
Frankly speaking, I think we need to understand how things work before criticising govt, no bi everything we go just dey criticise for criticism sake on international forums like Nairaland. It speaks to our exposure and awareness of issues. If you are going to attack govt have your solid points, and there are many.

Where are you guys getting this story of Nigeria's crude pre-sold?
Can you substantiate your claim?

This scammer again...

chiiraq802:
We have crude oil but no functional Refinery. So we exported our crude to other Countries for refining.

We still have crude oil and now we have Dangote Refinery. bt somehow Nigeria wants to start Importing Crude oil from Other Countries.

Lolss....9ja na cruise my guyy

Not WE

DANGOTE

He is a private business

Last year 2023 this same USA imported over 5 million barrels per day mostly from Mexico and Canada

So if you do not understand what is going on do some research
You and those liking your comment lack information and understanding
I am not in any way trying to belittle or insult you don't see it like that

You just don't understand what is going on

Buying from Canada and selling theirs makes sense to the US

If eg Chad or Niger has oil. It will make sense for us to buy from them reducing export costs and getting cheaper oil

So the USA is one of the biggest Exporters AND importers of crude

Max24:

Simply because Nigerias crude has been pre-sold for some years. Some long term customers have pre-bought our crude for some time to come and will expose Nigeria to litigation if we default, so Dangote will only get from Nigeria under two options.
1. Nigeria substantially increases its production capacity which cannot be done overnight.
2. Dangote waits until nnpc,'s contract with some of those customers expires and he takes their place.
So, for now Dangote being a private business has no option but to source for crude elsewhere.
Either way, these are positives and not negatives for us because it simply means there is more demand for our oil which will spur govt to work towards increasing production capacity.
Frankly speaking, I think we need to understand how things work before criticising govt, no bi everything we go just dey criticise for criticism sake on international forums like Nairaland. It speaks to our exposure and awareness of issues. If you are going to attack govt have your solid points, and there are many.

who is responsible for all these fvck ups you just listed above?

aribisala0:


Not WE

DANGOTE

He is a private business

Last year 2023 this same USA imported over 5 million barrels per day mostly from Mexico and Canada

So if you do not understand what is going on do some research
You and those liking your comment lack information and understanding
I am not in any way trying to belittle or insult you don't see it like that

You just don't understand what is going on

Buying from Canada and selling theirs makes sense to the US

If eg Chad or Niger has oil. It will make sense for us to buy from them reducing export costs and getting cheaper oil

So the USA is one of the biggest Exporters AND importers of crude

why did the US import crude oil from Canada and Mexico?

ecolime:




This is shameful

Fuel wey dem never even drill, we don already use am borrow money with nothing to show for it.

Buhari and all his goons (especially Amaechi & Sadiya Farouq) suppose dey jail as we speak.

sadly the true .... Na God go punish buhari for the evil Dy cos...

Kukutenla:

Where are you guys getting this story of Nigeria's crude pre-sold?
Can you substantiate your claim?

Does it not make sense ? Where do you think Buhari got all the huge loan guarantees from? Didn't you notice how desperate Buharis govt was for money and largely unaccounted. Do you know exactly how much we are owing China? Buharis only saving grace is that Tinubu does not want to open his govts heist. Buhari ran a laissez-faire govt where everyone stole to their capacity. So, anything goes then. Reason Emefiele broke all ethics of banking and he was not removed by Buhari.

afube:




Even as a layman, I can see clearly that there is something deficient or even wrong with Dangote's business model........This refinery is a 650,000 barrels per day refinery! how are they going to keep the refinery running 100% of the time if they are buying 2million barrels on the international market ONLY per month! ( that will barely last 3 days of refining)........even if he gets 2 million barrels per week from NNPC ( Tinubu no gree to sell to Dangote on credit nor in naira)...........that is just 14 days of full production in a month,how is he going to pay back his loans at that rate of production! Dangote may have entered one chance with this his mega project!

For 14 days of production he needs : 14 X 650,000 equals 9,100,000 barrels multiplied (by crude oil price) $84 i.e. $764 million dollars

Dangote needs close to $800 million dollars to service his refinery for only 2 weeks of full production? I wish him well its not easy to be a billlionaire............dangote is heavily over leveraged right now! Tinubu will not mortgage naija's finances to bail him out!

To keep the refinery busy and making money he had better get refiners from all over the world that can use his refinery to process their own crude................there is no fulani uncle to bail him out with our commonwealth! Karma is a bitch indeed!

oga have u calculated how much his making from each barrel? Multiple dat with number of barrel used per day.... There's no way he wont make profit.....thing is dat let the business impact life positively in Nigeria rather than cos more hardship while his pocket feed fat

Guys even most of those working at the refinery don't know what is going on. In Nigeria truth is scarce. Dangote/FGN/NNPC/Nigerian press etc are not telling us the truth. Has anybody noticed that since Tinubu came to power, he has been trying to halt/bring Dangote down at all costs? Dangote has been waiting for license to start selling some crude products but the FGN through the agency responsibible for issuing license has not done so. This is a refinery designed to produce the best oil standards euro 5 that is approved by the EU, EPA, and other world agencies but Nigeria say license is not ready. Dangote can't sell any product of the refinery in Nigeria for now.

Does Dangote have the money to pay for the crude in cash? maybe FGN is not willing to sell on credit to him while USA western texas is maybe willing to sell on credit for some months? Dangote Refinery is likely starting at 60,000 barrels per day for 2 weeks, then 100k bbd for another 1 month till it gets to around 300k bpd after 9 months of production. The refinery would get to 500k bpd after 2 years of 1st production. I do not envy dangote at this junction, debts must be pilling. The refinery won't make any profit in the 1st 2 years of production, it would take another 5 years before he starts making real profit

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 still don't know why most of y'all don't know that USA is the number one in the list of oil producing countries in the world. Nigeria is in distant 14 or so. Stop spreading false information

majole:
Guys even most of those working at the refinery don't know what is going on. In Nigeria truth is scarce. Dangote/FGN/NNPC/Nigerian press etc are not telling us the truth. Has anybody noticed that since Tinubu came to power, he has been trying to halt/bring Dangote down at all costs? Dangote has been waiting for license to start selling some crude products but the FGN through the agency responsibible for issuing license has not done so. This is a refinery designed to produce the best oil standards euro 5 that is approved by the EU, EPA, and other world agencies but Nigeria say license is not ready. Dangote can't sell any product of the refinery in Nigeria for now.

Does Dangote have the money to pay for the crude in cash? maybe FGN is not willing to sell on credit to him while USA western texas is maybe willing to sell on credit for some months? Dangote Refinery is likely starting at 60,000 barrels per day for 2 weeks, then 100k bbd for another 1 month till it gets to around 300k bpd after 9 months of production. The refinery would get to 500k bpd after 2 years of 1st production. I do not envy dangote at this junction, debts must be pilling. The refinery won't make any profit in the 1st 2 years of production, it would take another 5 years before he starts making real profit

are u telling no one is gonna buy the product? How much can a barrel make in profit compare to how much he purchased each barrel? Tinubu not giving him license yet is a very good ideal related to business

lokotamak:
But I think Nigeria get enough crude oil, which is the major source of income to federal government.

I beg which one be import of crude oil again?

I wounder oh imagine nigeria that supplies innumerable amount of crude oil to other countries to the point using it to owe debit that cannot be paid with same crude oil in more than five years to come if this crude oil eventually finish i wounder how nigerian will survive

Hotacetone:
I get angry Everytime they say they are importing oil from US. like WTF man
This only means one thing; fuel price will never come down

Has our crude oil finished?

nairalanda1:


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

The average Nigerian don't do verification before posting. Imagine what the guy said. The USA that produces more than 6 times Nigeria capacity.

Blessedarethepe:

Has our crude oil finished?

I don't think so. However, the minister of petroleum, Dangote, or someone should be summoned by the Senate for questioning. We need to know exactly what is going on

BigBashiru:


Because the UK German Italy France Belgium and United States regards nigerias crude oil as theirs and those running NNPC and nlng hv inferiority complex and can't challenge it. Also challenging it may lead to the Europeans sending troops here under the presence of supporting democracy.

This is the full truth.

Omooo. Thanx for the explanation.
This doesn't look good for us. What kind of business is that?

So we’re using our scarce FX to support Dangote again? Where is Dangote getting $$$ to buy crude from US??

Max24:

Does it not make sense ? Where do you think Buhari got all the huge loan guarantees from? Didn't you notice how desperate Buharis govt was for money and largely unaccounted. Do you know exactly how much we are owing China? Buharis only saving grace is that Tinubu does not want to open his govts heist. Buhari ran a laissez-faire govt where everyone stole to their capacity. So, anything goes then. Reason Emefiele broke all ethics of banking and he was not removed by Buhari.

Loan guarantees? What exactly do you mean by that and where did you get the info that Buhari used oil for "guarantees"? How much are we owing China? Enlighten me pls. Which ethics of banking did Emefiele broke without Buhari's approval or request that you think Buhari should have removed him?
You're the dude accusing some people of being poorly educated on this same thread o

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

While what you say is right. But do you think during the construction of that 650m bpd refinary, the supply of crude was not taken into consideration during feasibility studies? That the commitment of Nigerian and other West African crude production commitment had not been factored? Or Nnpc that invested billions of dollars, cbn that practically funded that refinary through subsidized dollars did not know that while comiting our crude production, stock should be made available for dangote refinary knowing the countrys economy depends on it?
Anyway, in the post, did you notice the following?
"The refinery had issued tenders to sell two fuel cargoes for export, a tender document showed and trading sources with knowledge of the matter told Reuters earlier this month"
From the above quoted, it seems dangote is importing crude, also getting locally, refining it and exporting. None is going for local use. Where is the diesel they said they will start with and first stock should hit the market February? The aviation fuel nko? Diesel is 1600,1800 per liter and rising!
Bros, there is something wrong somewhere. With the amount of investments Nigerians put in that refinary, which is part of the problem affecting our economy today, it would be expected no expect should take place without first satisfying the Nigerian local market.

Why are the telling us what is happening in this private business all the time?

It's because I believe it's all lies. The crude is from Nigeria here but the people working with dangote want to be selling the petrol at a high price so this bullshit story is to justify that.

Dangote is part of our problem in Nigeria.

Dangote cement in Togo is 3,500 naira equivalent. Why is he selling it to us here for 11k?

Kukutenla:

Loan guarantees? What exactly do you mean by that and where did you get the info that Buhari used oil for "guarantees"? How much are we owing China? Enlighten me pls. Which ethics of banking did Emefiele broke without Buhari's approval or request that you think Buhari should have removed him?
You're the dude accusing some people of being poorly educated on this same thread o

This thread is not about Emefiele. I only mentioned his name to support my main argument that Buharis govt did what they liked. If you feel my opinions don't address why Dangote had to import from US, then kindly give your own explanations. I am open to fresh revelations.

Lomprico2:
Why are the telling us what is happening in this private business all the time?

It's because I believe it's all lies. The crude is from Nigeria here but the people working with dangote want to be selling the petrol at a high price so this bullshit story is to justify that.

Dangote is part of our problem in Nigeria.

Dangote cement in Togo is 3,500 naira equivalent. Why is he selling it to us here for 11k?

I beg where are you so that i can give you 3.5m naira for 100 bags of dangote cement to be delivered anywhere in Togo. i go add 500k naira free for you

lexy2014:


why did the US import crude oil from Canada and Mexico?

One daddy GO like that advised them to

afube:




Even as a layman, I can see clearly that there is something deficient or even wrong with Dangote's business model........This refinery is a 650,000 barrels per day refinery! how are they going to keep the refinery running 100% of the time if they are buying 2million barrels on the international market ONLY per month! ( that will barely last 3 days of refining)........even if he gets 2 million barrels per week from NNPC ( Tinubu no gree to sell to Dangote on credit nor in naira)...........that is just 14 days of full production in a month,how is he going to pay back his loans at that rate of production! Dangote may have entered one chance with this his mega project!

For 14 days of production he needs : 14 X 650,000 equals 9,100,000 barrels multiplied (by crude oil price) $84 i.e. $764 million dollars

Dangote needs close to $800 million dollars to service his refinery for only 2 weeks of full production? I wish him well its not easy to be a billlionaire............dangote is heavily over leveraged right now! Tinubu will not mortgage naija's finances to bail him out!

To keep the refinery busy and making money he had better get refiners from all over the world that can use his refinery to process their own crude................there is no fulani uncle to bail him out with our commonwealth! Karma is a bitch indeed!

You that knows business model go and build your own refinery and put Dangote to shame

nairalanda1:


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

It is also the number two importer of crude in the world

So there is nothing strange about Nigeria refinery importing crude

Nigeria should aim to be a refining hub

That is

Not selling any crude at all
Buying and refining even 5 million additional barrels a day
So that we corner the West African market

When the price of crude is high we sell when low we buy

Its as if dani is in another world...

So wetin be his use and the refinery....

If... no relief... its better not in Nigeria...

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

I do not think I he is any where near operating at 100% of full capacity. I doubt if he is close to 50%

Judolisco:
u don't grab.... Dem still dey see money from Crude oil now... But you knw we've got a qouta of Crude oil that we must sell as part of OPEC and we're even struggling to sell dat qouta oh because of oil theft.... So it's a terrible situation...d Crude oil money part of am na loan we dey use am service, part na salaries, part corrupt people na dem dey chop am....na why if u carry Nigeria matter for head u fit mad oh

Looooooooool @ your last line... I been dey try reason am, the thing no make sense to me, na why I say make I ask

Max24:

Does it not make sense ? Where do you think Buhari got all the huge loan guarantees from? Didn't you notice how desperate Buharis govt was for money and largely unaccounted. Do you know exactly how much we are owing China? Buharis only saving grace is that Tinubu does not want to open his govts heist. Buhari ran a laissez-faire govt where everyone stole to their capacity. So, anything goes then. Reason Emefiele broke all ethics of banking and he was not removed by Buhari.

I was actually thinking you'll drop a link to substantiate the claim... That claim has been regurgitated over and over on this thread, but I can't seem to find an authentic news article to back it up