The Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, said the corporation held the right to sell crude to Dangote Refinery, owned by billionaire, Aliko Dangote.
Kyari explained on Tuesday, that in the agreement signed with Dangote refinery, there’s a clause of right of first refusal to supply crude oil to the plant which will be the largest single-train refinery in the world.
Dangote’s refinery plant scheduled to commence operation next year is an investment worth $25 billion, and its kick off date has been postponed twice in the last three years. It is expected to process 650,000 barrels of crude oil per day.
According to Kyari, aside from the right of first refusal, the NNPC Limited also holds 20 percent stake in the operation. Recall that the Central Bank of Nigeria (CBN) had provided N75 billion capital to the billionaire for the project.
He said by right, the NNPC Limited will sell a minimum of 33,000 barrels of crude oil to Dangote refinery for the next 20 years, and will also have access to 20 percent of the production from the billionaire’s plant.
“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. By right also, we have access to 20 percent of the production from that plant.” Kyari said.
Kyari, who revealed this during the State House Ministerial Briefing in Abuja, said the combination of Dangote refinery and NNPC refineries will help Nigeria halt importation of fuel into the country, and as much as 50 million litres of petrol can be produced.
“So, the combination of that and our own ability to bring back our refinery will completely eliminate any importation of petroleum products into this country.
“This is very practical; this is possible; as a matter of fact, what we have done with our own refineries and the Dangote Refinery with many other small initiatives we have put in place—small, modular, condensate refineries that we are building.
“If that happens, we are very optimistic it will happen; you will see that this country will now be a net exporter.” He said, adding that, “So, you will not have need for the importation of petroleum products into this country by the middle of next year.”
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