The Nigerian National Petroleum Company Limited has reached an agreement with Dangote Refinery to supply crude oil for 20 years.
The agreement gives NNPC the first right-of-first-refusal to supply crude oil to the refinery.
The NNPC Group Chief Executive Officer, Mele Kyari, confirmed the deal to journalists on Tuesday in Abuja.
He said the agreement would guarantee Nigeria’s oil stays relevant as countries transition to clean energy.
He said: “NNPC owns 20 percent equity in the Dangote Refinery and has a first right of refusal to supply crude oil to the plant. But we saw this energy transition challenge coming.
“And that means we have locked down the ability to sell crude oil for 33,000 barrels minimum by right for the next 20 years and by right also we have access to 20 per cent of the production from that plant.”
The NNPC chief also revealed the Dangote Refinery would begin crude production by the middle of next year.
Kyari added: “The combination of that and our ability to bring back our refinery will eliminate any importation of petroleum products into this country next year. You would not see any importation into this country next year.
“This is very practical. When we are done with our refineries and the Dangote refinery, there remain other small initiatives that we are doing, small modular condensate refineries that we are building. If that happens and we are very optimistic it will happen, you would see that this country will now be a net exporter.
“It will be a hub for the export of petroleum products, not just to the West African sub-region. This will happen. The flow of supply will change by the middle of next year. You will not need the importation of petroleum products into this country by the middle of next year.”
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