Latest news with #Naira-for-Crude
Business Insider
13-05-2025
- Business
- Business Insider
NNPC to resume crude oil drilling in northern Nigeria, confirms peace with Dangote refinery
The Nigerian National Petroleum Company Limited (NNPCL) has announced plans to resume crude oil drilling in northern Nigeria. The Nigerian National Petroleum Company Limited (NNPCL) is resuming crude oil drilling in northern Nigeria. The site is estimated to hold over one billion barrels of crude oil and 500 billion cubic feet of natural gas. Collaboration with companies, including the resolution of disputes with Dangote Group, is expected to enhance the project's success and impact. According to the company's new Group Chief Executive Officer, Bayo Ojulari, the Kolmani drilling project, located on the boundary between Bauchi and Gombe states, is expected to deliver significant benefits to Nigerians once completed. ' NNPC will continue oil drilling in the Kolmani field and will continue the work on the AKK gas pipeline from Ajaokuta to Kaduna to Kano. The companies working on the projects will continue, and new ones are also welcome," he said. 'The projects are critical in boosting the economy, and the impact will be felt by all Nigerians. By next month, people will begin to see. We will start work on the AKK gas pipeline and the Kalmoni. ' Oil discovery in the north In 2019, NNPC announced the discovery of hydrocarbon deposits at the Kolmani River II Well, located in the Upper Benue Trough within the Gongola Basin in the country's northeast. This marked the first major oil find in Northern Nigeria and laid the foundation for the Kolmani Integrated Development Project, a strategic initiative to harness the region's hydrocarbon potential. By 2022, the government launched commercial oil drilling in the area. Authorities said the project was expected to attract foreign investment and generate employment for local communities. The site is estimated to hold over one billion barrels of crude oil and 500 billion cubic feet of natural gas, with investment commitments already totalling $3 billion. Dangote, NNPCL resolve feud The relationship between Dangote Group and the Nigerian National Petroleum Company Limited (NNPCL) has been tense in recent years, largely due to disagreements over issues such as the controversial Naira-for-Crude deal, which faced inconsistencies under previous NNPCL leadership. However, according to Mr. Ojulari, the rift has now been resolved. ' We, as Nigerians, must hail Dangote's courageous efforts. Whatever he is investing, he is doing it in Africa. We have addressed the feud between the NNPC and the Dangote Refinery. Very soon, people will start seeing the impact."
Business Insider
09-05-2025
- Business
- Business Insider
From court battles to cooperation: Dangote and NNPC seem to have called for a truce
In what could be the start of a critical shift in Nigeria's oil and gas sector, Aliko Dangote, President/CEO of the Dangote Group, recently paid a high-level courtesy visit to the new Group CEO of the Nigerian National Petroleum Company Limited (NNPC), Mr. Bashir Bayo Ojulari, at the NNPC Towers in Abuja. Dangote and NNPC's new GCEO meet to mend ties and boost collaboration. Past clashes included lawsuits, failed crude deals, and investment disputes. The meeting signals hope for improved fuel supply and energy security. The meeting, historic in its timing and significance, represents an attempt by two oil powerhouses to repair frayed ties and pave the way for a more cooperative and mutually profitable future. Dangote vs NNPC The relationship between Dangote Group and NNPCL has been strained in recent years. Disputes arose over several issues, including the contentious Naira-for-Crude deal, which was inconsistent under the previous NNPCL leadership. Designed to boost local refining, the program failed amid misunderstanding, lack of commitment, and claims by NNPC that it had "forward-sold all of its crude." Further straining ties, NNPCL first proposed a $1 billion investment for a 20% interest in the Dangote Refinery. However, this was eventually cut to 7%, along with attempts to recoup some of the funds. Dangote Petroleum Refinery, the world's largest single-train refinery, last year also sued the NNPC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over the issuance of fuel import licenses. Dangote contended that the ongoing acceptance of such permits weakens indigenous refining capability, especially as his $19 billion refinery approaches full output. A recent Federal High Court verdict in Abuja permitted the Dangote Group's N100 billion lawsuit to proceed, rejecting NNPCL's bid to halt the case. This emphasized the rising institutional friction between both parties, even as Nigerians continue to face high gasoline costs. NNPC and Dangote unite for the national interest Dangote and Ojulari's meeting on Thursday is the first official interaction since the previous NNPC chief, Mele Kyari, was removed in April. Both sides highlighted a common goal: to encourage healthy competition, boost Nigeria's energy security, and speed up the country's economic growth, as reported by the Punch. Ordinary Nigerians face tremendous stakes. The country has long battled with fuel imports, irregular supplies, and rising prices. If given the right conditions, Dangote has noted that his refinery can handle all of Nigeria's fuel needs. However, the NNPC continues to play an important role in domestic petroleum distribution and national energy policy. Recent public sentiment appears to be in favor of Dangote's output. In February, a viral video experiment contrasted petrol from an NNPC station to fuel from an MRS station that sold Dangote fuel. The Dangote-powered generator lasted roughly 13 minutes longer, provoking public arguments about quality and efficiency. If Thursday's meeting is any indication, both Dangote and NNPC may finally see that partnership, not hostility, is what Nigeria needs.
Business Insider
05-05-2025
- Business
- Business Insider
Dangote's fight for Nigeria's oil future continues as he vows to defeat the cabal
At an investment event in Nigeria's commercial hub, Lagos, Africa's richest man, Aliko Dangote, did not mince words, as he noted that his fight with the cabal is still ongoing. Aliko Dangote is still in a fight with the cabal in Nigeria's oil importation system. Dangote accuses the group of funding resistance to the removal of petrol subsidies and opposing his oil refinery. The Independent Petroleum Marketers Association of Nigeria has declared their support for Dangote amidst the ongoing fight. The Nigerian billionaire, alluded to again, his a fight against some individuals in Nigeria's long-standing oil importation system, who have reaped enormous benefits from government subsidies on imported petroleum. He noted that they are still deliberately attempting to destroy his oil refinery, as he stated, 'those groups have funded resistance to the Bola Tinubu government's removal of petrol subsidies and are opposed to the refinery operating easily in the country.' He, nonetheless, like he did a few months back, noted that he would eventually win, as reported by the Punch newspaper. 'We're fighting, and the fight is not yet finished. But I have been fighting all my life, and I am ready and 100 per cent sure I will win at the end of the day,' Dangote added. Alhaji Aliko Dangote, Africa's richest individual, has a history of taking large-scale risks, but even he admits that his $23 billion oil refinery project is the most daring and difficult enterprise of his life. While the Dangote Refinery has been hailed as a game-changing project for Nigeria's energy sector, its journey from concept to reality has shown the country's oil industry's profound intricacies and vested interests, notably in refining. The Dangote Refinery, located on a 6,200-acre site in the Lekki Free Zone, is the world's largest single-train refinery. The plant officially began operations in 2023, after more than a decade of construction and investment. However, the refinery's real challenge began after its launch. Dangote vs players in the oil market One of Dangote's most notable conflicts has been with the Nigerian National Petroleum Corporation (NNPC). The NNPC initially offered to invest $1 billion for a 20% ownership interest in the refinery. That offer was eventually reduced to 7%, with requests to reclaim a portion of the funds previously deposited. Outside of this, the group had also complicated the process of the refinery sourcing crude as it initially mandated that the refinery purchase crude oil in dollars. This was later mitigated by the Naira-for-Crude initiative, which allowed the refinery to purchase crude in the country's local currency for six months, thereby reducing the cost of operation. After six months, the initiative was halted again before being reintroduced, highlighting the complex market structure of the Nigerian oil sector. Dangote is unreserved in his condemnation of the group, as he, in February, in an interview with Forbes, accused the group of being a part of the country's "oil mafia." 'The oil mafia is more deadly than the one in drugs because, with the oil mafia, there are so many people that are involved,' Dangote had said at the time. 'I've been fighting battles all my life, and I have not lost one yet. You might be wining and dining with them, but these are the guys that are the masters of moving things around.' Support from IPMAN As Dangote stays ongoing fighting the cabal, the Independent Petroleum Marketers Association of Nigeria declared their support for him. 'Well, this is business. Competition abounds. There is no businessman whom people will not fight if he is doing well, especially when it is only your goods that are being produced, and the others are not being patronised because of the price. So, it is evident that every businessman wants to survive. It's not an issue. What we can do is encourage him,' IPMAN Publicity Secretary, Chinedu Udadike, stated. 'We independent marketers are happy with him for his price slashes, although sometimes it's against our own business strategy and projections. But that is part of the business, it is profit and loss. You know the factors of demand and supply matter determines the market. So, if he's talking about how people want to sabotage him, he has told us that he's ready to fight the oil cabals, and he is in this business to ensure that Nigerians don't suffer.
Business Insider
28-04-2025
- Business
- Business Insider
Dangote Refinery refutes the report of foreign media on its current status, calling it a lie
On the 25th of April, Bloomberg reported that 'a large fuel-production unit at Nigeria's Dangote Oil Refinery' was undergoing maintenance. However, the Dangote Refinery has come out to dispute this report. Dangote Refinery disputes reports of fuel production unit undergoing maintenance. Spokesperson claims refinery is loading millions of litres of fuel daily. Initial report claimed issue with gasoline-focused unit, impacting regional trade flows. Recently, the Punch, in an interview with a senior spokesperson at the Dangote Refinery, discovered that the report of Dangote's fuel production unit being under repair is not entirely accurate. 'It is not true. Don't believe everything you see online. People can go to the refinery to check,' the spokesman said during the interview. 'The report is a lie. We are loading fuel every day. Millions of litres are being loaded on a daily basis. Go to the refinery there and see whether they are loading or not, and see how many trucks are leaving. We load millions of litres every day,' the spokesperson added. The initial report claimed that the refinery had an issue with a gasoline-focused residual fluid catalytic cracker, which can process around 200,000 barrels per day. 'While the RFCC isn't the only unit used in gasoline production at the 650,000 barrel-a-day plant, it's big enough that any outage will likely impact regional trade flows. The refinery was recently supplying 18.4 million liters — 115,000 barrels — of gasoline to the domestic market each day,' the Bloomberg report read. This stemmed from the analysis by Kpler and shipping, which noted that since April 14, Dangote has halted gasoline and diesel exports. Dangote Refinery recent fuel price drop In April, the Dangote refinery r esumed its fuel price crash, dropping the price of petrol in Nigeria from ₦880 to ₦865. This has been a recurring trend with the refinery since December 2024, as it periodically slashes prices marginally. However, a halt in the Naira-for-Crude initiative, which allowed the refinery to buy crude from the country in its local currency, forced Dangote to halt the sale of fuel in Naira, all together.
