The naira-for-crude sale agreement between the Federal Government and Dangote Refinery seems not to be working yet, Vice-President of Dangote Industries Limited, Edwin Devakumar, has said.
Devakumar said crude supply from the Nigerian National Petroleum Company (NNPC) Limited under the scheme is far short of expectation.
“We need 650,000 barrels per day, (state oil firm NNPC Ltd) agreed to give a minimum of 385,000 bpd but they are not even delivering that,” he said.
This volume, according to him, is peanuts.
The federal government took the decision to sell crude to the refinery in naira as part of the effort to encourage the company and ease the pressure on dollar demand in the country.
How Utapate crude blend would impact Nigeria’s economic fortunes
The NNPC, which formally introduced its latest crude oil grade, the Utapate crude oil blend, to the international crude oil market during the week, says it will be a game changer in crude oil production in the country, revenue generation and economic growth efforts.
Managing Director of NNPC E & P Limited (NEPL), Mr. Nicholas Foucart, said during the introduction of the Utapate crude oil blend into the market held in London that it marked a significant milestone for Nigeria’s crude oil export to the global energy market.
He said: “Since we started producing the Utapate Field in May 2024, we have rapidly ramped up production to 40,000 barrels per day (bpd) with minimum downtime.
“So far, we have exported five cargoes, largely to Spain and the East Coast of the United States; while two more additional cargoes have been secured for November and December 2024, representing a significant boost to Nigeria’s crude oil export to the global market.”
He added that since its introduction into the global market, the Utapate crude oil blend has enjoyed a positive response from the international crude oil market, due to its highly attractive qualities.
