Reported by: Ijeoma G | Edited by: Henry Owen | Stone Reporters News
The Dangote Refinery is poised to commence crude oil production in the near future, with its upstream oil operations in Oil Mining Leases (OML) 71 and 72 expected to yield around 40,000 barrels of crude oil daily, according to a report from S&P Global.
“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 stated.
Alhaji Aliko Dangote, Group President of Dangote Industries, remains focused on exploring new upstream opportunities, which could further expand the conglomerate’s asset portfolio in the oil and gas sector.
The refinery’s expansion, however, may face initial challenges in securing sufficient crude oil. To mitigate these supply constraints, Dangote has reached a strategic agreement with the Nigerian National Petroleum Company Limited (NNPC).
Under the ongoing “crude for naira” swap arrangement, the NNPC provides Dangote with 14 shipments of crude oil or an equivalent value in US dollars. In return, Dangote supplies the same quantity of gasoline and gasoil, which is paid for in Nigerian naira, easing potential supply bottlenecks and supporting the refinery’s operational readiness.
The commencement of crude production marks a significant milestone for Dangote Refinery, reinforcing its position as a key player in Nigeria’s oil and gas industry while boosting domestic energy supply.
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