SEATTLE (Oil Monster): The Nigerian National Petroleum Limited (NNPCL) and Dangote Refinery have signed a fresh two-year crude supply deal in Naira. This was confirmed by Andy Odeh, NNPC’s chief corporate communications officer.
In an effort to ease pressure on the currency and stabilize domestic pump prices, Nigeria agreed to sell 445,000 barrels of crude per day to the Dangote refinery in naira last year. The volume and cost of supply have been reviewed on a regular basis. During the August review meeting, the most recent decision was made to prolong the supplies for an additional two years.
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NNPCL has given the refinery three naira crude cargoes in August and five cargoes in September and October in accordance with the conditions of the new Sales and Purchase Agreement. The new agreement ensures consistent crude supply to the refinery, which produces 650,000 barrels per day, according to NNPCL.
Note that the new agreement was made at a time when the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) ordered the Dangote Refinery to stop supplying gas and crude, claiming widespread layoffs of Nigerian employees. Dangote has agreed to reabsorb fired employees, and PENGASSAN has called off the strike as a result of the FG mediation.
Meanwhile, Dangote Group CEO Alhaji Aliko Dangote emphasized the value of cooperation between the two companies, pointing out that they are partners rather than rivals in advancing Nigeria's energy transformation goal.
