NNPC, NMDPRA Finalized Crude Oil Sales Agreement with Dangote Refinery

SEATTLE (Oil Monster): The Nigerian National Petroleum Corporation (NNPC) Limited stated that it has reached an agreement with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for crude sales to the Dangote refinery in local currency. This follows the recent approval by the federal executive council (FEC) to allow Naira-based sales and purchases of refinery products.

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According to an NMDPRA statement, the Dangote refinery is on track to supply an initial 25 million liters per day of Premium Motor Spirits (PMS) to the market this month. The supply volume will increase significantly to 30 million litres per day beginning in October of this year. The refinery will sell petrol in Naira from October 1, 2024. The present distribution of gasoline from the refinery is priced in USD.

Aliko Dangote, CEO of Dangote Refinery, expressed deep gratitude to President Bola Tinubu and his administration for permitting naira commerce. He noted that the decision will lessen foreign exchange pressure by at least 40% while also providing significant stability to the local currency.

According to estimations, Dangote refinery requires a minimum of 15 cargoes per year. The NNPC will agree to supply at least four cargoes.