Aliko Dangote, Africa’s richest man, is set to boost Nigeria’s oil industry as his Dangote Oil Refinery, billed as Africa’s largest integrated petrochemical complex, prepares to receive up to six cargoes of crude oil from the Nigerian National Petroleum Corporation Limited (NNPC).
An NNPC official, speaking on condition of anonymity Reuters, confirmed the supply agreement, saying six cargoes, totaling 200,000 barrels per day (bpd), are expected to be delivered in December under a one-year contract. The volumes for the following months will be determined by mutual agreement and availability.
Other sources indicate that around 4-5 cargoes, equivalent to at least 130,000 barrels per day, are in the pipeline. A Dangote Group official, who also requested anonymity, mentioned that “some of the deals have confidentiality clauses” when asked about the NNPC supply deal.
Refinery prepares to resume operations after delays
This development follows a missed production deadline in August. Devakumar Edwin, executive director of the Dangote Group which oversees the refinery, confirmed that the facility is now actively operating. prepare for the start of refining operations.
The Dangote oil refinery, with an initial processing capacity of 540,000 barrels per day, was inaugurated with great fanfare in May.
Although the refinery operational delays While refined oil has raised questions about its ability to meet 100 percent of Nigeria’s refined oil needs and potentially generate an export surplus, it remains poised to have a significant impact on the economy from Nigeria.
IEA recognizes Dangote’s contribution to African energy landscape
Lately, the The International Energy Agency (IEA) congratulated Dangote and its Dangote Oil Refinery as a central force poised to drive oil demand growth over the next decade.
According to the IEA, this transformation is expected to benefit African countries that currently rely heavily on imported refined energy products, making it instrumental in shaping Africa’s energy future, promoting self-sufficiency and reducing dependence on foreign imports.
However, the The IEA added that As demand for oil and gas in Africa continues to increase, new oil and gas projects face changing dynamics due to global trends, which have implications for current and future producers.