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Dangote Refinery to get 300,000 barrels/day from NNPC: Kyari

Dangote Refinery and Alhaji Aliko Dangote, President/Chief Executive of Dangote Group (Inset)

*Mele Kyari, Group Managing Director/CEO of NNPC Limited discloses that a supply of 300,000 per day to Dangote Refinery in two decades brings the total supply to 2.1trillion towards ensuring sufficient supply of petroleum products to consumers

Isola Moses | ConsumerConnect

As part of effort at ensuring sufficient petroleum products supply to consumers, the Nigerian National Petroleum Corporation Limited will have the first right of refusal to supply the Dangote Refinery with about 300,000 barrels of crude oil per day for the next 20 years.

Malam Mele Kyari, Group Managing Director and Chief Executive Officer (GMD/CEO) of NNPC Limited, disclosed this development to journalists at the 49th Session of the State House Ministerial Briefing organised by the Presidential Communications Team, in the Presidential Villa, Abuja, FCT.

Malam Mele Kyari, Group Managing Director/CEO of NNPC Limited, in the State House, Abuja

Kyari stated that a supply of 300,000 per day in 20 years brings the total supply to 2.1 trillion by the NNPC.

The National Oil Company (NOC) is said to have succeeded in locking down the huge supply as part of the Federal Government’s means of guaranteeing sufficient petroleum products supply for Nigeria.

The NNPC Chief said: “We have secured the right to sell up to 300,000 barrels of crude oil to the Dangote refinery for the next 20 years.

“Not only that, by right, we also have access to 20 per cent production from that plant.”

ConsumerConnect had reported that Kyari noted that stolen crude and refined oil products were being stored in places of worship, including churches and mosques in the Niger Delta region.

According to him, various law enforcement agencies had arrested 122 persons involved in pipeline vandalism and oil theft from April to August of 2022.

He also defended the Federal Government’s recent move to hire private entities to safeguard the network of oil pipelines criss-crossing the country.

Kyari said the NNPC operatives discovered that stolen petroleum products were stored in places of worship with the consent of the clergy, members and neighbours.

He mentioned that in an instance, at least 295 illegal connections were spotted on a 200km stretch of pipeline.

He further stated: “As you may be aware, because of the very unfortunate acts of vandals along our major pipelines from Atlas Cove all the way to Ibadan, and all others connecting all the 37 depots that we have across the country, none of them can take delivery of products today.

“The reason is very simple. For some of the lines, for instance, from Warri to Benin, we haven’t operated them for 15 years. Every molecule of product that we put gets lost.”

The GMD/CEO as well noted: “You remember the sad fire incident close to Sapele that killed so many people.

“We had to shut it down and as we speak, we have a high level of losses on our product pipeline.

“You remember Lagos, when a fire outbreak happened on one of our pipelines.”

He stated: “We discovered that some of the pipelines were actually connected to individuals’ homes.

“And not only that, with all sensitivity to our religious beliefs, some of the pipelines and some of the products that we found were in churches and mosques.”

The spate of vandalism has prompted NNPC Limited to shut down its network of pipelines conveying petroleum products across theft-prone areas, said he.

Kyari added: “When we say we are losing 700,000 barrels of crude oil per day, we mean it. This is an opportunity lost.

“There is no company that will produce oil and then you lose 80 percent of that and continue to produce the oil.”

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