News

NNPC Requests Office Space At Dangote Refinery Amid Crude Supply Deal

Published

2 months ago

Sep 13, 2024.

The Nigerian National Petroleum Corporation (NNPC) Limited has requested dedicated office space for around 10 of its employees at the Dangote Refinery as part of an agreement related to crude oil supply.

During a Twitter Spaces event titled “Unlocking How Dangote Refinery Shapes Price,” Devakumar V.G. Edwin, Vice President of Oil & Gas at Dangote Group, disclosed this development.

EDITOR’S PICKS

EKO HOT BLOG reports that according to Edwin, NNPC made the request to station its team at the refinery to oversee the supply of crude oil, monitor the production process, and repurchase refined products in Naira.

“NNPC has informed us that they intend to station a team of 6 to 10 people permanently at our refinery,” Edwin revealed, adding that they requested office space for their team.

Under this arrangement, the refinery will purchase crude oil from the government in Naira and sell refined products, including Premium Motor Spirit (PMS), back to NNPC in the same currency, instead of using dollars.

Edwin noted that negotiations with the government are ongoing, particularly on the pricing structure for crude oil, the pricing mechanism, and the exchange rate to be applied to the Naira.

NNPC Office Dangote Refinery

Edwin also highlighted that although no final agreement has been reached, Aliko Dangote has agreed to the Federal Government’s proposal to sell NNPC’s products back to the government in Naira, even if it results in financial losses due to exchange rate fluctuations.

Edwin quoted Dangote as saying, “I am willing to take this loss in the interest of the country… Someone has to take certain risks, and I am ready to face this loss, no matter how significant it may be.”