Nigerian National Petroleum Company (NNPC) Limited is expected to allocate six million barrels of crude oil to Dangote Refinery in December 2023.
Gatekeepers News reports that the move by the NNPC is pivotal towards boosting domestic refining and attaining energy security in the country.
The development comes as plans are being concluded for the signing of a sales and purchase agreement (SPA) between the national oil company and the refinery.
The formalisation of the agreement is scheduled to take place in the coming weeks.
Sources who spoke to TheCable said the deal is purely on a commercial basis and without any recourse to discount, or selling at rock-bottom prices.
Meanwhile, section 109 of the Petroleum Industry Act (PIA) 2021 stipulates domestic crude oil supply obligation to refineries, including the Dangote Refinery, as well as NNPC refineries in Port Harcourt, Warri and Kaduna.
The section further provides that the supply of crude oil to the domestic market shall be on a willing buyer and willing supplier basis.
In August 2021, NNPC acquired a 20 per cent minority equity stake in the Dangote Refinery.
The 650,000 bpd capacity refinery was inaugurated by former President Muhammadu Buhari in May 2023.
Shortly before the inauguration of the refinery, the national oil company announced that it would supply 300,000 barrels of crude oil to the facility.
However, in September, Executive Director of Dangote Group, Devakumar Edwin, said the NNPC would not be able to supply the refinery until November.
