With the delivery of two million barrels of crude, the $19 billion Dangote Oil Refining Company is set to commence production of petroleum products paving the way for additional jobs and foreign exchange relief to the economy.
This follows yesterday’s delivery of an additional one million barrels of crude oil yesterday to the refinery, two weeks after taking the delivery of the first cargo of one million barrels.
The Refinery had disclosed that it purchased the first one million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO), one of the largest trading companies in Nigeria as well as globally, trading over 8 million barrels of crude oil per day, adding that these represent the first phase of the 6 million barrels of crude oil to be supplied by a range of suppliers.
The latest cargo, which sailed to the facility’s Single-Point Mooring (SPM) where it was discharged into the refinery’s crude oil tanks, has increased total deliveries to about two million barrels.
Experts in oil and gas, yesterday, said with this level of crude supplies, Dangote Refinery is set to start operations, describing the coming on stream of Dangote Petroleum Refinery and Petrochemicals as a major milestone, capable of making a positive impact in the economies of Nigeria and West Africa.
In a telephone interview with Vanguard, yesterday, the Executive Chairman, African Energy Chamber, NJ Ayuk, said: “We are excited to see that the Dangote Refinery has secured its crude cargoes This is a significant milestone, both for the country and the West African region at large. With a capacity to produce 350,000 barrels per day, the refinery holds particular significance for the country, where a reliance on fuel imports has been a defining feature for decades, despite its over 37 billion barrels of proven reserves.”
“This cargo will see diesel, aviation fuel and Liquefied Petroleum Gas produced, followed shortly thereafter by the production of Premium Motor Spirit. These products will enable the country to become self-sufficient while exporting to regional neighbours. This, in turn, will strengthen the fiscal dynamics, putting an end to fuel subsidies, high prices and inconsistent supply, thereby setting a strong benchmark for other resource-rich countries in Africa.”
“The project is designed 100% for Nigerian crude and is expected to meet 100% of the country’s demand for refined products, with surplus exported. This, in itself, is a testament to the instrumental role the facility will play in facilitating growth in Nigeria, enabling the country to rely predominantly on its own resources to sustain its economy. We commend the facility for this milestone achieved and we look forward to the first supply of Nigerian fuel products.”
Similarly, the Chairman of International Energy Services, Dr. Diran Fawibe, said: “This is a welcome development that will create many multiplier effects, including additional jobs opportunities. Any producing country would want to allocate a share of its local production to refining and that makes the industry complete. The supply of crude oil to the economy used to be considered as a part of energy security, we know from history many countries went to war or influenced war against many nations simply because of importation of products to secure the supply in their country.