Nigeria’s Underproduction: Dangote Refinery Plans to Import 24m Barrels of Crude Oil from US
There are strong indications that the new Dangote Refinery may be importing millions of crude oil from the United States to boost its production capacity.
Thisday Newspaper reports that this has to do with the issues Nigeria has in lifting its own oil output.
The report quotes Bloomberg as having seen a document where Dangote Refinery tendered for the purchase of “ 2 million barrels a month of West Texas Intermediate (WTI) Midland crude for 12 months starting in July”. The tender is said to be closing on May 21.
According to the report, the plan to order for US crude “ reflects Nigeria’s struggle to lift its own crude production, which remains well below theoretical capacity, as well as Dangote’s willingness to tap cheaper supplies than it can find at home”.
According to Elitsa Georgieva, Executive Director at Citac, an energy consultancy specialising in the African downstream sector, “supply of Nigerian crude is insufficient or unavailable and sometimes unreliable.”
Georgieva added, “WTI on the other hand, is available, with reliable supply and competitively priced”.
It would be recalled that the Nigerian National Petroleum Company Limited (NNPC) had promised meeting the Organisation of Petroleum Exporting Countries (OPEC) quota, but was reported to have recorded an estimated 30 million barrels underproduction in the first quarter of this year.
Thisday Newspaper reports that this has to do with the issues Nigeria has in lifting its own oil output.
The report quotes Bloomberg as having seen a document where Dangote Refinery tendered for the purchase of “ 2 million barrels a month of West Texas Intermediate (WTI) Midland crude for 12 months starting in July”. The tender is said to be closing on May 21.
According to the report, the plan to order for US crude “ reflects Nigeria’s struggle to lift its own crude production, which remains well below theoretical capacity, as well as Dangote’s willingness to tap cheaper supplies than it can find at home”.
According to Elitsa Georgieva, Executive Director at Citac, an energy consultancy specialising in the African downstream sector, “supply of Nigerian crude is insufficient or unavailable and sometimes unreliable.”
Georgieva added, “WTI on the other hand, is available, with reliable supply and competitively priced”.
It would be recalled that the Nigerian National Petroleum Company Limited (NNPC) had promised meeting the Organisation of Petroleum Exporting Countries (OPEC) quota, but was reported to have recorded an estimated 30 million barrels underproduction in the first quarter of this year.
FOLLOW US
About Post Author
