The Nigerian National Petroleum Company Limited has signed a new two-year crude supply agreement with Dangote Petroleum Refinery and Petrochemical, aimed at ensuring steady feedstock to the 650,000 barrels-per-day facility in Lekki, Lagos.
NNPCL’s Chief Corporate Communications Officer, Mr Andy Odeh, confirmed the development in a statement on Tuesday, noting that the deal was finalised in August under the Federal Government’s Crude-for-Naira initiative.
According to him, the new Sales and Purchase Agreement provides for consistent supply of crude oil to the refinery, with reconciliation of product volumes and costs to be carried out periodically in naira.
“The company allocated three naira-denominated crude cargoes to the refinery in August, and five more were approved for September and October,” Odeh disclosed.
The agreement follows earlier interventions by the Naira-for-Crude Technical Committee after Dangote Refinery had suspended sales of petrol in the local currency. The suspension was later lifted following talks involving the federal government and relevant stakeholders.
However, the renewed partnership comes at a turbulent time for the facility. The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) recently directed its members to halt crude and gas supply to the refinery, citing the mass dismissal of Nigerian workers.
Attempts by the federal government to mediate between the union and the refinery management ended in a stalemate on Monday, raising fresh concerns over possible disruptions to operations.
