NNPC to supply 300,000 barrels per day to the Dangote refinery

For the next 20 years, the Nigeria National Petroleum Corporation Limited would have the first option to supply the Dangote refinery with about 300,000 barrels of crude oil per day.
Mele Kyari, the Group Chief Executive Officer of NNPC Ltd., revealed this to the media when he appeared at the 49th State House Ministerial Briefing, which was held at the Presidential Villa in Abuja and was sponsored by the Presidential Communications Team.
In 20 years, a supply of 300,000 per day would increase the NNPC’s total supply to 2.1 trillion.
He claimed that the company had been successful in securing the enormous supply as a manner by which the Federal Government could ensure that Nigeria would have a sufficient supply of petroleum products.
“We have secured the right to sell up to 300,000 barrels of crude oil to the Dangote refinery for the next 20 years. Not only that, by right, we also have access to 20 per cent production from that plant,” he said.
He claimed that items made from stolen crude oil were now kept in houses of worship including churches and mosques.
He added that from April to August 2022, 122 people involved in pipeline destruction and oil theft have been apprehended by various law enforcement organizations.
This was said as he defended the government’s recent decision to contract private companies to protect the country’s extensive network of oil pipelines.
He claimed that NNPC employees found stolen petroleum products being stashed in houses of worship with the approval of the priest, congregation, and neighbors.
On a 200 km section of pipeline, he said, at least 295 illicit connections had been discovered in one case.
“As you may be aware, because of the very unfortunate acts of vandals along our major pipelines from Atlas Cove all the way to Ibadan, and all others connecting all the 37 depots that we have across the country, none of them can take delivery of products today.
“The reason is very simple. For some of the lines, for instance, from Warri to Benin, we haven’t operated them for 15 years. Every molecule of product that we put gets lost. You remember the sad fire incident close to Sapele that killed so many people. We had to shut it down and as we speak, we have a high level of losses on our product pipeline.
“You remember Lagos, when a fire outbreak happened on one of our pipelines. We discovered that some of the pipelines were actually connected to individuals’ homes. And not only that, with all sensitivity to our religious beliefs, some of the pipelines and some of the products that we found were in churches and mosques,” Kyari said.
He said that because of the recent incidence of vandalism, NNPC Limited had to shut down its network of pipelines that transported petroleum products through regions where theft was common.
“When we say we are losing 700,000 barrels of crude oil per day, we mean it. This is an opportunity lost. There is no company that will produce oil and then you lose 80 per cent of that and continue to produce the oil.”
The head of NNPC claimed that between April and August 2022, 122 people had been arrested as a result of the government’s reaction to oil theft.

GOGAN Media.