AO2LAW’s Post

September 3rd, 2024 Takeaways from Dangote’s press conference on ARISE TV LTD 1. "Our refinery will eliminate all fuel queues in Nigeria" 2. "Our refinery will show the true consumption of Nigeria using our tracker" 3. The Dangote refinery has officially commenced the production of petrol 4. Aliko Dangote said the introduction of naira for crude will reduce the demand for FX by 40% 5. "Your car engines will last longer' -- Dangote assures Nigerians of quality petrol from refinery 6. "Our quality matches that of America and any other country in the world" 7. "We are ready to start rolling out petrol within the next 48 hours" #fuel #PMS #Refinery #Dangote #Nigeria

Some people are so desperate to see Nigeria fail so they can get their desired secession that they lose their common sense. See them celebrating the purchase of US crude by the Dangote Refinery as a failure of the refinery and the NNPCL. Nigeria's crude oil cargoes have already been contracted far into the future. And we have a quota from.OPEC. This is not new. When then President Obasanjo and Yar'adua introduced the National Integrated Power Project, the NNPC could not supply the NIPP gas because Nigeria's gas had already been purchased in future contracts far into the future. And if you break those contracts, Nigeria would be taken to arbitration. That is why the Dangote Refinery is buying crude from America. Because it is a private company that will get its supply from anywhere it can to meet its own set targets and timelines. The same America also buys crude oil from Mexico, Canada, Saudi Arabia and Iraq. It is business. You buy from anywhere you can get your raw materials. That does not mean the NNPCL or the Dangote Refinery has failed. But it certainly means that your own senses have failed BIG TIME!!! #TableShaker

No official statement from Dangote Industries Limited yet maybe the refinery has started selling petrol to the marketers. As I have mentioned before, the lawmakers should amend the Petroleum Industry Act and withdraw Section 109 which is related to guaranteeing feed-stock to refiners, and ask private refineries to source their feedstock by themselves either locally or internationally, or introduce the backward integration program to the PIA to help refiners invest in the onshore fields so that they can receive crude oil from their oil fields. This would address the challenges of the inadequate supply of crude oil to local refineries and increase Nigeria's oil production. Also, would put an end to this back-and-forth argument. Invest In Nigeria 🇳🇬 #GodBlessNigeria #MayTinubuSucceed #MayDangoteSucceed

Aliko Dangote, President and CEO of the Dangote Group, has voiced serious concerns regarding the ongoing crude oil supply challenges affecting the Dangote Refinery. In a recent statement, he attributed these issues to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and International Oil Companies (IOCs) operating within Nigeria. Dangote claimed that while the NNPC reportedly supplies around 60% of the required 50 million barrels of crude, the main hurdle lies with NUPRC's reluctance to enforce domestic supply obligations. This situation underscores the pressing need for collaboration and action to ensure our local industries can operate smoothly and efficiently. Read more at https://lnkd.in/eUynx9uT #OilAndGas #Nigeria #NUPRC #EnergySector #AlikoDangote #Entrepreneurng

It’s good that the NNPC is coming out to tell Nigerians it’s plans. But for a country that has the capacity of extracting at least 1 million barrels of crude oil per day, September to December is 120 days (30 days per month) which is a total of more than 120 million barrels but can give only a meager amount of about 18 million barrels (15%) to her new local private refinery, a refinery with capacity of producing 650,000 barrels of crude oil daily, where will Dangote source the remaining 50% to 85% from? This is a tale of a meat seller whose children feeds on bones not because the meat isn’t enough nor availabile, but because their father has sold not only his birth right but that of his children too. The remaining 85% of our crude extracted by NNPC will be exported, some of which will be stolen and then they import finished goods in return. Nigerians have a capacity of consuming 400,000 barrels of petrol per day which is 40% of the lowest crude oil extracted daily. Even if at least 500,000 barrels of petrol is been imported per day which is also far below half of what’s been exported, and smuggling is prevented (the leave eating insect is under the leave), there will never be fuel scarcity in Nigeria. Lots and Lots of hidden corners in the NNPC but the fact remains that the largest part of our crude is been used to pay off debts/loans hence they have the capacity to export far more than they can halfly import. They must export to pay debts even if they can’t import. What they use the debts/loans to do, we don’t know. Before now, NNPC do say scarcity is due to the marketers that are hoarding petrol but suddenly, as Dangote Refinery has come up, NNPC is now busy buying-off/collaborating with private petrol stations so that they can have enough stations to sell Dangote’s petrol since they will be the sole buyer, a marriage that won’t last for long. Very soon, the breeze will blow and we will all see the under of the chicken. I hope the meter installations on all NNPC extracting pumps has not stopped. I hope the NNPC can provide us with data of our crude oil exported & petrol imported. I hope the NNPC can come out and tell us if they are running at profit or at loss (Assets-Liabilities). Nigeria my country, the more you look, the less you see.

Earlier yesterday before the news broke out of the Federal Executive Council meeting. I wrote an article with the caption " The Nigerian government can ensure transparent and accountable collaboration with local refineries by implementing the following safeguards" which were outlined. The first on my list was what the federal government adopted yesterday, instructing NNPCL to ensure crude is sold to the Dangote refinery and other domestic refineries in Naira. This made a lot of people happy as it sounds. But without a STRICK follow-up by NNPCL and the energy regulatory bodies in the country, the situation will remain the same. Ask me why; Just like the Dangote refinery and other domestic refineries will make more money selling their refined products in the International market, so will the oil producers. The upstream producers invest hugely in dollars, so telling them to sell their crude oil in Naira will be difficult for them to accept, except their crude is sold in the equivalent of a dollar. That is when this issue can be settled, and the two parties can do business. #energy #energymanagement #refineries ##innovation #oilandgas #nigeria #africa #policies

Why Fuel Importers Must Rethink Their Forex-Draining Business 💡 Since its commissioning in May 2023, the Dangote Oil Refinery has faced challenges in maintaining full production due to insufficient crude oil supply. With issues in the oil and gas sector mounting, it’s time for fuel importers to prioritize Nigeria’s interests. The Crude Oil Refiners Association of Nigeria calls for a shift in focus to export, reducing pressure on the Naira. As we anticipate the refinery’s petrol production in August, Nigerians hope for a positive change. 👉 Read the full article: https://lnkd.in/dqhfXxiJ #meizanigeria #FuelCrisis #DangoteRefinery #NigeriaEconomy #meizanigeria

📰 nduka orjinmo from Bloomberg highlights the commencement of the Dangote Oil Refinery, poised to reduce Nigeria's reliance on imported fuels 📰 🛢️ The new 650,000 barrel-a-day oil refinery has started operations, states the Dangote Petroleum & Petrochemicals Group, signifying a major shift in Nigeria's fuel production strategy 🛢️ 🎉 Alhaji Aliko Dangote thanks President Bola Ahmed Tinubu, calling the refinery a "game changer" for Nigeria 🎉 🕵️♂️ Amidst an anti-graft commission investigation, the Dangote Group maintains its integrity, denying any wrongdoing in foreign exchange dealings 🕵️♂️ 🌐 The refinery, valued at $18.5 billion, is set to diversify Nigeria's crude processing capabilities, including African grades and Arab Light crude 🌐 💹 With an extensive supply agreement with Nigerian National Petroleum Corporation, the refinery fortifies Nigeria's position in the global oil landscape 💹 #DangoteRefinery #NigeriaOil #AfricanEconomy #FuelProduction #AviationFuel #Diesel #EconomicDevelopment #CapitalProjects #NigerianNationalPetroleum

Dangote Oil Refinery in Nigeria prepares for test runs this week, following the recent delivery of its sixth crude cargo from the Agbami field. With a daily capacity of 650,000 barrels, the refinery aims to make Nigeria a net exporter of fuel. The facility is set to kick off with 350,000 barrels per day, generating essential products like diesel, kerosene, and jet fuel. Dangote also revealed plans to publicly list the Dangote Petroleum Refinery on the Nigerian Exchange Limited, reinforcing its pivotal role in transforming Nigeria's oil industry.   Omono Okonkwo Saheed Alaya Pieter Scribante Adedoyin Adebayo Gordon Murray Dakim Dung Petlong Dakhling Ikechukwu Promise Obialor Follow The African Energy Council for more energy news. #DangoteRefinery #oilindustry #aecouncil #nigeria #oilandgas #energytransformation #oilproduction #oilgas #fuelefficiency #infrastructuredevelopment #energyefficiency

[9/3, 2:37 PM] Alh Ali Gusau: NNPCL. Dear all, Kindly effect PMS pump price as recommended in the attached file. Effective September 3, 2024. [9/3, 2:37 PM] Alh Ali Gusau: Takeaways from Dangote’s press conference 1. "Our refinery will eliminate all fuel queues in Nigeria" 2. "Our refinery will show the true consumption of Nigeria using our tracker" 3. The Dangote refinery has officially commenced the production of petrol 4. Aliko Dangote said the introduction of naira for crude will reduce the demand for FX by 40% 5. "Your car engines will last longer' -- Dangote assures Nigerians of quality petrol from refinery 6. "Our quality matches that of America and any other country in the world" 7. "We are ready to start rolling out petrol within the next 48 hours" #TheCableIndex