NNPC to Fuel Dangote’s Refinery for Test Runs

Industry sources have reported that NNPC Ltd, the state oil company of Nigeria, is scheduled to provide up to six crude oil shipments in December for experimental operations at Dangote’s new 650,000-barrel-per-day oil refinery.

Fuel exports from the United States and Europe to Africa could be impacted by this refinery, which is supported by Aliko Dangote, the richest man in Africa, and could change the dynamics of oil trading in the Atlantic Basin.

The Dangote refinery, which is situated close to Lagos in the Lekki Free Trade Zone, intends to turn Nigeria into a net exporter of fuel. Six crude oil shipments, or 200,000 barrels per day, are part of a one-year agreement for December, according to a NNPC official. Future volumes will be agreed upon by both parties.

Following delays and exceeding $19 billion in cost estimates, the refinery began commissioning in May and is anticipated to gradually increase its fuel output as it gets closer to reaching full operating capacity.