The Dangote Refinery is expected to be allocated six million barrels of crude oil by the Nigerian National Petroleum Company (NNPC) Limited in December 2023.
NNPC move to supply the barrels is seen as a wat to boost domestic refining while attaining energy security in the country.
There are also plans to sign a sales and purchase agreement (SPA) between the national oil company and the refinery, with the formalisation of the agreement scheduled to take place in the coming weeks.
It was gathered that the deal will be done on a purely commercial basis and without any recourse to discount, or selling at rock-bottom prices.
The Petroleum Industry Act (PIA) 2021, Section 109 gives the domestic crude oil supply obligation to refineries, including the Dangote Refinery, as well as NNPC refineries in Port Harcourt, Warri and Kaduna.
The section also provides that the supply of crude oil to the domestic market shall be on a willing buyer and willing supplier basis.
NNPC in August 2021 acquired a 20 percent minority equity stake in 650,000 bpd capacity Dangote Refinery.
The NNPC announced after the inauguration of the refinery that it would supply 300,000 barrels of crude oil to the facility.
