By Rosemary Caleb
Under a new agreement,the Federal Government is to supply 12 million barrels of crude oil to the Dangote Refinery in October.
Billionaire businessmen and Chief Executive Officer of Dangote Refinery,Aliko Dangote, confirmed the development during an interview with Bloomberg TV in the U.S.
He said the crude oil supply is part of an ongoing agreement with the federal government to enable the refinery to process crude locally and produce petrol, diesel, and jet fuel for the domestic market.
“We are working towards a solid agreement with the federal government that ensures energy security for the country. This means no more fuel queues,”
According to him,“The government has committed to providing us with crude oil, and in October, they will deliver 12 million barrels, which translates to roughly 390,000 barrels a day. We will refine this crude to produce gasoline, diesel, and aviation fuel for the local market. Any surplus will be exported.”
“The deal with the government ensures that we sell the refined products to all marketers, which will mean the reopening of 50 per cent to 60 per cent of our petrol stations that have been idle. This will also reduce the costs tied to having ships floating off the coasts of Lome and elsewhere. In terms of demurrage alone, we are looking at saving over $1 billion,”
