Dangote Refinery inauguration: NNPC vows to supply 300,000 BPD of crude oil

As momentum drives towards the inauguration of the   Dangote Refinery to commence operation this month, the Nigerian National Petroleum Corporation Limited (NNPCL) has confirmed plans  to make available 300,000 barrels of crude oil per day to the Dangote Refinery so as to begin its operations, describing the development as “a marketing opportunity.”

The Group Chief Executive Officer of NNPC, Mallam Mele Kyari, on Thursday, made the disclosure while delivering his address at the Nigeria Oil and Gas Opportunity Fair held at the Nigerian Content Development and Monitoring Board Conference Centre, Bayelsa centred on the theme “The oil and gas industries: Catalyst and fuel for the industrialisation of Nigeria.”

The NNPC boss at the biennial conference said,  “The NNPC saw the strategic interest of doing business, and we will be supplying 300,000 barrels of Nigerian crude to Dangote Refinery from NNPC. That is a marketing opportunity.”

Submitting that Nigeria must focus on gas production to expand its gas footprint, he said in so doing the country will begin to succeed in creating the industralisation it craves.

“The only way this industry can become the catalyst and fuel for that is for us to build gas, and we are focused on domestic gas, as we are also looking for gas that can go to other countries. We’re focused on domestic gas.

“Everyone is talking about domestic refining. We see what we are doing. We don’t talk about it. We will keep lamenting till we all will see.”

He noted that one big challenge for the industry in the Country is security in the Niger Delta which have affected oil production.

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He, however, said the NNPCL had risen to the challenge with its partnership with government security agencies which is paying off.

“Production last year was at 1.1m barrel per day. In March, we hit 1.67m bpd. We have suffered some operational issues in the last 23 weeks, but we know that we will achieve our objectives of recovering production.

“Then, if we can come back and put their money into new ventures because no one is putting in money now. This is very simple because no one is going to produce oil for someone who did not contribute unless it is guaranteed.

“This is the reality. That is why we took the front line and decided that we will contend with the security situation.

“We are glad with the progress we have made now. There is a clear connection between energy and poverty. We are talking about climate change and energy transition. So, we need to provide a cleaner source of energy.

“There is no country that is developed without energy. Industralisation is guaranteed with energy. No industry works without energy,” he stated.

Kyari noted that industralisation and prosperity can come to Nigeria when issues bordering on energy is addressed.

“The oil and gas industry is in a vantage position to provide that.

“As we look at the GDP numbers, it may look small but the reality is that 48 per cent of all revenues available to all tiers of government come from the oil and gas industry.

“This is the collection from FIRS (Federal Inland Revenue Service), NURPC (Nigerian Upstream Petroleum Regulatory Commission) authorities and NNPC share. Any major infrastructure done with any state or at the national level is a result of this 48 per cent from this industry.

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“No one is willing to put in money. There’s a clear connection between energy and poverty. No industry works without energy,” he said.

Military operations to deflate illegal production of oil have been heightened with troops bombarding illegal refineries across the Country, particularly in the oil rich Niger Delta region.

The 650,000bpd-integrated Dangote refinery project, according to the company’s website, is due for opening on Monday, May 22, 2023.

Meanwhile, military clampdown on illegal oil installations, as gathered by Nigerian  NewsDirect, have recorded the destruction of illegal oil refining plants and arrest of perpetrators of oil theft.

According to information gotten from the Defence Headquarters, troops of the Operation Delta Safe (OPDS) have destroyed 38 illegal refining sites and apprehended 29 suspected oil thieves in the last two weeks.

The Director, Defence Media Operation, Maj.-Gen. Musa Danmadami, on Thursday in Abuja at the bi-weekly news conference on the operations of the armed forces, disclosed that the troops conducted patrols, raids, anti-illegal oil refining and swap buggies operations at different locations within Bayelsa, Delta and Rivers States.

He said this was aimed at denying oil theft and other criminal elements freedom of action.

Danmadami disclosed that the troops, in the conduct of Operation Octopus Grip and other operations discovered and destroyed illegal refining sites with 24 wooden boats, 169 storage tanks, 152 ovens and 19 dugout pits.

According to him, the troops also recovered 551,500 litres of crude oil, 394,500 litres of Automotive Gas Oil, 16 vehicles, four motorcycles and one tricycle.

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Other items recovered were two pumping machines, one outboard engine, one generator, one speed boat, four weapons and 132 assorted ammunitions, while 29 economic saboteurs were also arrested.

“All recovered items and apprehended suspects have been handed over to the appropriate authority for further action.

“Additionally, it is worthy to mention that the sum of N448.3 million were denied the oil thieves.

“Relatedly, the air component conducted series of air operation within the joint area of operation.

“Notably, an air interdiction was conducted at Abacheke general area, observed to be active with illegal oil bunkering activities.

“Consequently, the target was struck, destroying all illegal refining equipment at the location,” he added.

In the South East, Danmadami said the troops of Operation UDO KA had sustained offensive against the outlawed Indigenous People of Biafra/Eastern Security Network and other criminal activities in the zone.

He said the operational activities resulted in killing of two terrorists, arrest of seven suspected terrorists and rescue of four kidnapped victims within the period under review.

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