₦airaland Forum

The Dangote refinery is expected to start crude oil production soon, a report by S&P Global has said.

Dangote’s upstream oil assets, Oil Mining Leases 71 and 72, are expected to start pumping oil before the end of the year.

According to the report by S&P, the assets will start producing about 40,000 barrels of crude oil per day.

“Dangote’s upstream assets in the Niger Delta, Oil Mining Lease 71 and 72, could soon provide another supply injection, with production expected to start this month and reach up to 40,000 b/d,” the report said.

It was added that the Group President, Alhaji Aliko Dangote, remains interested in new upstream opportunities, which could add to an expanding asset base for the wider conglomerate.”

remAs the refinery grows, early challenges sourcing crude oil only risk becoming more acute. However, Dangote welcomed a breakthrough deal with the Nigerian National Petroleum Company Limited for alleviating supply concerns.

Under a current “crude for naira” swap agreement, NNPC supplies Dangote with 14 crude oil cargoes, or sources the equivalent value of US dollars, in exchange for the same volume of gasoline and gasoil to be supplied in the local currency.

The PUNCH reports that the NNPC signed another two-year crude supply agreement with the Dangote refinery.

The PUNCH gathered that the deal signed in August would ensure the steady supply of crude to the 650,000-barrel-per-day refinery located in Lekki, Lagos.

The naira-for-crude deal was ordered by President Bola Tinubu last year amid the crude crisis facing the Dangote refinery. The crude earmarked for local consumption was to be sold to local refineries, beginning with the Dangote refinery.

Though Dangote had repeatedly appreciated Tinubu for the intervention and its impact in helping lower crude prices, it had also complained of low crude supply forcing it to rely more on the United States for feedstock.

It is believed that the production of crude by the Dangote refinery would bolster fuel production at the refinery.

The refinery had consistently faced crude shortages as disagreements between it and oil producers stalled crude transactions.

dre11:
https://punchng.com/dangote-begins-crude-oil-production-soon-report/?amp

Patriotic9ja:
Overcoming challenges. Nice one Dangote. The man who refuses to bow to obstacles. He is debottlenecking every bottleneck

hush15:
I wonder why FG can't make refinery work if one man can. Even if na to privatize am and make the refinery plc.... when Atiku said it, people went for his head, but here we are today, its evident only private sector can run things in this country.


But Dangote too get sense sha. That monopoly thing ehn, its coming because by the time other players enter the market, he would have dominated the market and left them with probably less that 10percent of the market share. They really came late to the party cos it takes a very long while to build a refinery.

stuffs2002:
Another knife into the hearts of Obi and his horde of bitter OBIDIENTS

Any good news about Nigeria will always send Obi and his horde of bitter OBIDIENTS into deep pain

Patriotic9ja:
For decades we never had a functioning refinery and no one dared to venture into it. Someone took high risk and invested billions of dollars. People were even doubting its success while construction was going on. Now that it has become a reality, you here monopoly abi monogamy.

There are still deficits today. So others can invest bigger than Dan

FutureFocus:
My brother your head dey there, Dangote has my support, the man is using Eagle and Crows tactics on them, when his eagle 🦅 get to high altitude, the crows will fall off, let him keep flying higher to higher altitude.

They better gang up and build their own refineries now , at the end Nigerians will benefit

We need some competition like this in Power sector also.

God Bless Dangote

Patriotic9ja:
That is the spirit my brother. If not for anything sef, he is creating thousands of jobs and putting an end to fuel scarcity problem in the country.

stuffs2002:
Another knife into the hearts of Obi and his horde of bitter OBIDIENTS

Any good news about Nigeria will always send Obi and his horde of bitter OBIDIENTS into deep pain

FutureFocus:
And he’s also saving the Naira against the dollar,

stuffs2002:
Another knife into the hearts of Obi and his horde of bitter OBIDIENTS

Any good news about Nigeria will always send Obi and his horde of bitter OBIDIENTS into deep pain

hush15:
I wonder why FG can't make refinery work if one man can. Even if na to privatize am and make the refinery plc.... when Atiku said it, people went for his head, but here we are today, its evident only private sector can run things in this country.


But Dangote too get sense sha. That monopoly thing ehn, its coming because by the time other players enter the market, he would have dominated the market and left them with probably less that 10percent of the market share. They really came late to the party cos it takes a very long while to build a refinery.

kolente:
Dangote currently contributee over 20% to the trade surplus Nigeria currently records.

Every sane Government will support him.