The Nigerian National Petroleum Company Limited (NNPC) will provide Dangote Refinery and Petrochemicals Limited with six million barrels of crude oil beginning in December of this year, in a significant move.
The critical supply is a critical step towards the Dangote Refinery’s full-scale operation, a $19.5 billion complex that is the world’s largest single-train refinery, AllNews Nigeria reports.
Former President Muhammadu Buhari commissioned the refinery on May 22, 2023, and it completed full technical completion five months later.
NNPC Limited has allocated crude oil to Dangote Refinery, according to multiple sources within the Nigeria Upstream Petroleum Regulatory Commission and Dangote Refinery. The signing of crude oil supply sales and purchase agreements was a watershed moment.
In order to guarantee a consistent supply of crude oil to nearby refineries, the Petroleum Industry Act (PIA) imposes a domestic supply requirement, which is in line with the provisions of this allocation.
Based on a willing buyer and willing seller model, PIA states that crude oil supply to the domestic market will occur.
Aliko Dangote, the president of the Dangote Group, praised NNPC Limited for being a cooperative partner that will offer vital assistance for the start-up of the 650,000 barrels per day refinery.