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Oil & Gas

PMS Now N890 - Dangote Refinery Crashes Ex-Depot Price

Oil & Gas

Petrol Now N890 – Dangote Refinery Crashes Ex-Depot Price

From today, Saturday February 1, Nigerians will now pay lower rates for Premium Motor Spirit (PMS), commonly known as petrol. This is as the Dangote Petroleum Refinery, earlier today reduced the ex-depot price of PMS from N950 to N890 per…

Finance

Oando Delivers Strong FY2024 Results: 45% Revenue Surge to N4.1 Trillion Fuels N65.5 Billion Profit

Africa’s leading integrated energy company, Oando PLC, has announced a stellar financial performance for FY 2024, achieving a remarkable 45% year-on-year revenue growth to N4.1 trillion, driven by the successful acquisition and integration of additional 20% stake in NAOC Joint…

Oil & Gas

NNPC Ltd Uncovers 58 Ilegal Refineries In One Week

The Nigeria National Petroleum Company Limited (NNPC Ltd) has uncovered 58 illegal refineries and 19 illegal pipeline connections in Niger Delta region from January 18 to 24, 2025. It also stated that it recorded a total of 159 incidents of…

Oil & Gas

NNPC Launches 5 Mini-LNG Plants, Boosts Gas Supply by 97 Million Cubic Feet Daily

The Nigerian National Petroleum Company Limited (NNPC Ltd.) and its partners have launched five mini-Liquefied Natural Gas (LNG) plants in Ajaokuta, Kogi State, marking a significant step towards deepening domestic gas utilization. This groundbreaking initiative aligns with the Federal Government’s…

Technology & System

Africa Energy Technology Centre Partners with Legend and Legacy PR to Enhance the 2025 Conference

The Africa Energy Technology Centre (AETC) is delighted to announce a strategic partnership with Legend and Legacy PR, a leading event marketing and public relations firm, to enhance the upcoming Africa Energy Technology Conference 2025. Scheduled for May 27-29, 2025,…

Energy

NEITI Commends NNPCL on Port Harcourt and Warri Refineries Resumption As Major Step Toward Energy Self-Sufficiency

The Nigeria Extractive Industries Transparency Initiative (NEITI) has hailed the resumption of operations at the Port Harcourt and Warri refineries as a monumental achievement for Nigeria’s energy sector. In a statement issued on Sunday, NEITI emphasized that these developments are…

The Dangote Petroleum Refinery, one of Africa’s largest and most ambitious refinery projects, is set to receive 12 million barrels of crude oil from the United States, according to The Africa Report. This development underscores the challenges the $20 billion facility faces as it struggles with insufficient local crude supply to meet its refining goals. The shipment, which departed the U.S. recently, is expected to arrive in Nigeria by February, further highlighting the growing reliance on international sources to fuel the refinery’s operations. The Dangote refinery, located in Lekki, Lagos State, aims to ramp up its refining capacity to 650,000 barrels per day (bpd) by June 2025. However, local supply issues have hindered progress. The Nigerian National Petroleum Company Limited (NNPC), the country’s state oil company, has faced difficulties in meeting its obligations to supply enough crude oil to the refinery. An insider source told The Africa Report, “About 12 million barrels of crude have departed the US and should arrive in Nigeria by February.” This import is a strategic move to ensure the refinery’s production targets are met amid local supply shortages. While the Dangote refinery has already increased its output to about 500,000 bpd, achieving its target of 650,000 bpd by mid-year remains a significant challenge without steady access to crude oil. NNPC is currently struggling to provide the Dangote refinery with the 350,000 bpd required from the 450,000 bpd allocated for Nigeria’s domestic consumption. This mismatch has led refinery officials to look beyond Nigeria’s borders for the necessary feedstock. According to a refinery official, “Currently, we are at 500,000 bpd; we will ramp to 650,000 by midyear. You know what it means? So, it is a normal process to source crude oil anywhere it is available.” In response to the ongoing challenges, the Dangote refinery is actively seeking to bolster its crude oil storage capacity. The facility is constructing eight additional tanks, increasing its storage by 41.67% to a total of 3.4 billion liters. “Importing crude from other countries instead of buying locally means that our crude stockpiles will have to be higher,” explained Devakumar Edwin, Vice President in charge of the oil and gas business at Dangote Industries. The refinery’s decision to import crude oil comes at a time when President Bola Tinubu’s government has been pushing for a “naira-for-crude” deal. Since July 2024, the Nigerian government has directed the NNPC to sell crude oil to local refineries in naira, a move aimed at stabilizing Nigeria’s foreign exchange reserves. In October 2024, the government further restricted the sale of crude to only those refineries involved in petrol production, initially focusing on the Dangote refinery. Although the refinery is benefiting from the naira-for-crude arrangement, sources within the industry acknowledge that the NNPC’s crude supply remains insufficient. The Dangote refinery was expected to require 550,000 barrels of Nigerian crude daily to meet its full production needs, amounting to approximately 17 million barrels per month. However, with local supply falling short, Dangote has had no choice but to source additional crude from global markets. As part of its long-term strategy, the Dangote refinery had previously issued a term tender for two million barrels of West Texas Intermediate (WTI) Midland crude monthly, for 12 months starting in July 2024. This tender for a total of 24 million barrels in one year is further evidence of the refinery’s growing dependence on international crude suppliers. The Dangote refinery is already playing a crucial role in Nigeria’s fuel production, supplying gasoline, diesel, and aviation fuel both domestically and to international markets. Despite the logistical hurdles, the refinery remains optimistic about achieving its ambitious refining targets, with plans to expand its capacity and reduce Nigeria’s reliance on imported refined products. Refinery officials are hopeful that the situation will improve as local crude supply stabilizes. However, the reliance on imported crude highlights the fragility of Nigeria’s oil supply chain and the challenges faced by the country’s refining industry. As the Dangote Petroleum Refinery continues its journey toward full capacity, the importation of crude oil from the United States marks a critical moment in the project’s development. Whether local suppliers, such as the NNPC, can meet the demand of such large-scale refineries in the future will be key to the country’s energy security and economic stability. The situation also emphasizes the need for continued reforms in Nigeria’s oil sector, with the government’s commitment to increasing the capacity of local refineries likely to play a pivotal role in the country’s energy future.

Oil & Gas

Dangote Refinery Faces Crude Oil Supply Challenges, Sources 12 Million Barrels from US

The Dangote Petroleum Refinery, one of Africa’s largest and most ambitious refinery projects, is set to receive 12 million barrels of crude oil from the United States, according to The Africa Report. This development underscores the challenges the $20 billion…

Energy

NNPCL, NIPCO, Axxela, Shell Among Beneficiaries as NMDPRA Approves Gas Licenses

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has commenced the rollout of gas licenses to qualified players in the sector, following frequent collapse of the national grid. The grid has so far recorded one collapse this year after…

Energy

NIES 2025 International Session to Unlock Africa’s Energy Future Through FDI

One of the cornerstone sessions of the 2025 Nigeria International Energy Summit (NIES), the International Panel, will spotlight the transformative role of Foreign Direct Investment (FDI) in accelerating growth across Africa’s oil, gas, and power sectors. This pivotal session, themed…

Energy

President Tinubu is Taking In-Country Gas Utilisation to Unprecedented Levels — Soneye, NNPC Ltd Spokesperson

Described by Nigerians from all walks of life as unprecedented, President Bola Tinubu will be performing the groundbreaking ceremony for five mini-LNG plants in Ajaokuta, Kogi State. NNPC Ltd’s Chief Corporate Communications Officer, Olufemi Soneye spoke to a select group…