FG to deliver 4,000 barrels of crude to Dangote Refinery daily as Naira-for-crude deal begins
The Federal Government (FG) is set to deliver up to 400,000 barrels of Nigerian crude to the Dangote Refinery (DR) daily under its naira-for-crude agreement.
The Bloomberg report which disclosed this on Monday, said that this very crucial development was expected to take place over the next two months and would amount to 24 million barrels of Nigerian supply between October and November 2024.
The development is sequel to the announcement by the Federal Government that the naira-for-crude deal had commenced.
The report added that the increase in processing capacity which could have major implications for both the refinery’s operations and the local oil industry, would also transform the region’s import and export markets.
The cargo allocations reviewed by Bloomberg News indicate that Dangote Refinery’s increasing reliance on local feedstock would disrupt the Atlantic oil market by substantially decreasing Nigeria’s crude exports.
The 650,000-barrel-a-day plant which is larger than any other in Africa or Europe will claim 13 to 14 shipments from Nigeria’s typical monthly Programme of about 50 cargoes.
However, the scheduled volume is significantly larger than the average 255,000 barrels a day of Nigerian oil taken in by Dangote over the first half of the year as it gradually ramped up processing and data compiled by Bloomberg show.
The Chairman of Project Management Firm Engineers, India, Vartika Shukla, said last month that Dangote was already running at 60-70 per cent capacity and would reach its full rate within months.
The latest allocations also suggest that Dangote has continued to curtail its buying of US crude, according to traders.
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