NNPC, Dangote Refinery in Talks Over Crude Oil Sales, Product Buy-Back Deal

The Nigerian National Petroleum Company Limited (NNPC) and Dangote Petroleum Refinery are in advanced talks over a crude oil sales and product buy-back deal.

The discussions, which may be concluded next week, involve the sale of crude oil to the Dangote refinery in naira and the buy-back of refined petroleum products from the $20bn plant in naira.

According to Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, the parties are making progress on the naira transactions for crude purchase and product buy-back.

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However, he revealed that oil marketers have been boycotting the diesel and aviation fuel produced by the Lekki-based plant, and have even reported the refinery to President Bola Tinubu, claiming that the low-priced diesel is counter-productive to their businesses.

Edwin also stated that NNPC has demanded to oversee the production of refined products at the Dangote refinery, as the national oil company will supply crude to the plant.

The Dangote official expressed surprise at the challenges faced by the refinery, including the boycott by oil marketers and the limited local supply of crude from NNPC.