Dangote Refinery Secures Major Crude Oil Supply Agreement With TotalEnergies …C0NTINUE READING HERE >>>
Henzodaily.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
Patrick Pouyanne, CEO of Dangote Refinery, has disclosed that TotalEnergies, a leading French energy company, has finalized an agreement to supply the refinery with crude oil.
This announcement followed a meeting with Aliko Dangote, the refinery's major owner and Africa's wealthiest individual.
Dangote Refinery secures major crude oil supply agreement with TotalEnergies
Source: UGC
Dangote has been working to obtain crude oil for his refinery, which, once fully operational, will be the largest in Africa and Europe, with a capacity of 650,000 barrels per day.
Recently, Henzodaily.ng reported that Dangote Refinery is preparing to import 24 million barrels of crude oil from the United States over the next year.
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No more importation: Aliko Dangote speaks on its refinery plans, gives Nigerians hope
TotalEnergies, Dangote to ink crude supply deal
According to BusinessDay, Pouyanne shared at the Africa CEO Forum in Kigali, Rwanda, that the two executives have progressed toward finalizing the deal.
Pouyanne said:
“We met this morning, we made the first deal between both of us.
“The two CEOs met with our head of trading and we found the way to convince them to make a deal.”
According to a tender document reviewed by Reuters, the company issued a tender in May for a monthly supply of two million barrels of West Texas Intermediate (WTI) Midland crude for a year starting in July.
The refinery, which began operations in January, was constructed at a cost of $20 billion. Despite being Africa's largest oil producer, Nigeria relies heavily on imported fuel and other refined products.
Dangote's goal is to change this dynamic. He stated that the refinery has sufficient capacity to provide gasoline, diesel, and aviation fuel for the entire African continent and also export to Brazil.
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Dangote told the panel:
“We started producing jet fuel, we are producing diesel, by next month, we'll be producing gasoline. What that will do, it will be able to take most African crudes.”
He mentioned that the refinery's capacity exceeds Nigeria's needs and will be able to supply fuel to West, Central, and Southern Africa.
Dangote indicated that the next phase of the refinery project is set to commence early next year.
Alongside Shell, Exxon, and Chevron, TotalEnergies is a significant crude oil producer in Nigeria.
NUPRC gives oil firms strict orders on Dangote
In related news, Henzodaily.ng reported that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) ordered oil companies in Nigeria to supply about 483,000 barrels of crude oil daily to local refineries.
The initiative is part of Nigeria's efforts to ensure regular supply to local refiners for domestic consumption.
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After Dangote, another $360m private refinery nears completion, sets date to begin to produce petrol
About six local refineries, including Nigeria's three refineries in Port Harcourt, Warri, and Kaduna, are expected to begin production in 2024.
Source: Henzodaily.ng
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