Dangote Refinery signs new two-year crude deal with NNPCL

Dangote Refinery has signed a new deal with Nigerian National Petroleum Company (NNPC) Limited to supply the refinery with five cargoes of crude each in September and October bringing the total supply to 82 million barrels since October 2024.

Spokesman of NNPCL, Andy Odeh said this in a response to questions sent by text message to Bloomberg.

It is further clarified that 60% of the crude supply is naira-denominated according to NNPC.

Supply of crude to Dangote refinery in recent months has received attention especially with the Naira for crude in which it was agreed that 445,000 barrels a day of crude will be sold to the Dangote refinery in naira to alleviate pressure on the currency and stabilize domestic pump prices.

Following this intervention, Dangote Refinery, on Saturday, resumed the sale of Premium Motor Spirit (PMS) to distributors in Naira nationwide.

Dangote Refinery informed its customers through a message; “Following the intervention of the Naira for Crude Technical Committee chairman, we are pleased to inform you of the resumption of PMS Sales in Naira commencing immediately.”

In May, the Dangote Refinery had said that it does not compete with Nigerian National Petroleum Company Limited (NNPC Ltd), as the two companies play complementary roles in Nigeria’s energy and refining environment.

Speaking during the meeting, the CEO of Dangote Group, Alhaji Aliko Dangote, emphasized the importance of collaboration between the two organizations, noting that they are not competitors but partners in driving Nigeria’s energy transformation agenda.

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“There is no competition between us. We are not here to compete with NNPC Ltd. NNPC is part and parcel of our business, and we are also part of NNPC. This is an era of cooperation between the two organizations,” Dangote added.

This was stated during a courtesy visit by the President/Chief Executive Officer of Dangote Group, Mr. Aliko Dangote, to the Group Chief Executive Officer (GCEO) of NNPC Ltd., Mr. Bashir Bayo Ojulari, at the NNPC Towers in Abuja.