The Nigerian National Petroleum Commission (NNPC) has disclosed its plan to supply 300,000 barrels of crude oil to the Dangote Refinery to commence its operations. The Group Chief Executive Officer of the NNPC, Mallam Mele Kyari revealed this during the biennial Nigeria Oil and Gas Opportunity Fair held at the Nigerian Content Development and Monitoring Board Conference Centre in Bayelsa State.
Kyari emphasized on the need for Nigeria to focus on gas production and expansion of gas footprint. He stated that domestic refining and gas production were the keys to creating the industrialization Nigeria craves. The NNPC CEO commended Nigeria’s achievement in the oil sector in the past year. He revealed that production last year was at 1.1 million barrels per day, but by March 2021, it had increased to 1.67 million barrels per day despite operational issues during the last 23 weeks.
While acknowledging the security challenges in the Niger Delta, Kyari stated that the NNPC and government security agencies have partnered to address the security issue. He expressed optimism in achieving the set objectives of recovering production, which would attract investors to the industry.
Kyari also highlighted the relationship between energy and poverty, noting that “industrialisation is guaranteed with energy. No industry works without energy.” As such, he urged Nigeria to prioritize energy to facilitate prosperity and to address poverty. The oil and gas industry accounted for 48% of all revenues available to all tiers of the government, as stated by Kyari.
Dangote Refinery is a 650,000 barrels per day integrated refinery project. The refinery project is set to open on Monday, May 22, 2023, according to the company’s website. The NNPC has taken significant steps to ensure adequate supply of crude oil for the refinery; hence, the partnership with the Dangote Group.
Overall, the NNPC’s plan to supply crude oil to Dangote Refinery could be beneficial for the country. It will ensure adequate supply of crude oil and would create opportunities for investment in the oil and gas industry.
