By Nnenna Agbai- Abuja
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has moved to address recent social media reports alleging the unilateral termination of its crude oil sales agreement with the Dangote Refinery.
In a press release issued on Monday, the state-owned oil firm clarified the status of the contract, emphasising that the agreement remains active and is set to expire at the end of March 2025.
The contract in question, which involves the sale of crude oil in Naira, was initially structured as a six-month agreement, contingent on availability. NNPC Ltd. confirmed that discussions are currently underway to establish a new contract once the current one lapses.
Since October 2024, NNPC Ltd. has supplied over 48 million barrels of crude oil to the Dangote Refinery under this arrangement. Cumulatively, the refinery has received more than 84 million barrels of crude oil since it commenced operations in 2023. This partnership underscores NNPC Ltd.’s commitment to supporting local refining capacity and ensuring the availability of petroleum products within Nigeria.
In the statement, Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd., reiterated the company’s dedication to fostering mutually beneficial agreements with domestic refiners. “NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions,” Soneye stated.
The clarification comes amid widespread speculation on social media regarding the status of the contract, which has been a cornerstone of Nigeria’s efforts to boost domestic refining and reduce reliance on imported petroleum products. The Dangote Refinery, one of the largest single-train refineries in the world, is seen as a critical player in Nigeria’s energy sector, with the potential to significantly impact the country’s economy.
As discussions for a new contract progress, stakeholders will be closely monitoring developments to ensure the continued stability and growth of Nigeria’s refining industry. NNPC Ltd. has assured the public that it remains focused on its mandate to support the nation’s energy needs while fostering strategic partnerships.
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