As tensions eased between Dangote and oil stakeholders, the refinery is set to receive 12 million barrels of crude oil from the Nigerian government.
Aliko Dangote, the founder and chairman, announced that an agreement had been finalised with the federal government to supply the refinery with 12 million barrels of crude oil in October.
The arrangement falls under the “Crude Oil for Naira” deal, a strategic partnership between the Dangote Group and the Nigerian government.
Dangote, who is the chief executive officer of Dangote Refinery, confirmed this development during an interview with Bloomberg TV in the United States.
According to him, the crude oil supply is part of an ongoing agreement with the federal government to enable the refinery to process crude locally and produce petrol, diesel, and jet fuel for the domestic market.
“We are working towards a solid agreement with the federal government that ensures energy security for the country. This means no more fuel queues,” Dangote stated.
“The government has committed to providing us with crude oil, and in October, they will deliver 12 million barrels, which translates to roughly 390,000 barrels a day. We will refine this crude to produce gasoline, diesel, and aviation fuel for the local market. Any surplus will be exported.”
He noted that it will help bring 50 to 60 percent of currently non-operational filling stations back into service, drastically improving access to fuel across the country.
The deal with the government ensures that we sell the refined products to all marketers, which will mean the reopening of 50 percent to 60 percent of our petrol stations that have been idle.
Dangote highlighted that this move will cut costs associated with ships idling off the coasts of Lome and other locations. He noted that the savings on demurrage alone could exceed $1 billion.
