The NNPC Limited has disclosed that it would supply Dangote Refinery with 300,000 barrels of crude oil per day, totalling 2.1 trillion in 20 years.
According to its Managing Director, Mallam Mele Kyari said that the newly-sealed supply contract is a guarantee that the Federal Government is committed to ensuring sufficient petroleum products for members of the public.
“We have secured the right to sell up to 300,000 barrels of crude oil to the Dangote refinery for the next 20 years. Not only that, by right, we also have access to 20 percent production from that plant”, he stated.
He gave indication that Dangote Refinery would be operational from the middle of next year and it can produce up to 50 million litres of petrol per day.
Kyari added that “NNPC owns 20 percent equity in the Dangote Refinery and has a first right of refusal to supply crude oil to the plant. But we saw this energy transition challenge coming. We knew that time would come when you would look for people to buy your crude and you would not find it.
“And that means we have locked down the ability to sell crude oil for 33,000 barrels minimum by right for the next 20 years and by right also we have access to 20 percent of the production from that plant.
“The combination of that (the 50 million litres of petrol per day from Dangote Refinery) and our ability to bring back our refinery will eliminate any importation of petroleum products into this country next year. You would not see any importation into this country next year”, Kyari said.
He added: “This is very practical. When we are done with our refineries and the Dangote refinery, there remain other small initiatives that we are doing, small modular condensate refineries that we are building. If that happens and we are very optimistic it will happen, you would see that this country will now be a net exporter.
“It will be a hub for the export of petroleum products, not just to the West African sub-region. This will happen. The flow of supply will change by the middle of next year, it will change. You will not need the importation of petroleum products into this country by the middle of next year”.