Nigeria’s state-owned oil company, the Nigerian National Petroleum Corporation (NNPC) Limited has made arrangements to provide a daily supply of 300,000 barrels of oil to the Dangote Refinery, which is scheduled to be commissioned next week.
During the Nigerian Oil and Gas Opportunities Fair 2023 held in Bayelsa on Thursday 18 May, Mele Kyari, the CEO of NNPC Limited, mentioned in a brief statement that the company had taken an early strategic interest in the Dangote Refinery due to recognizing its potential in Nigeria and beyond.
Kyari emphasized that the decision to sell crude oil to the Dangote Refinery would ensure a guaranteed market for the company’s crude oil.
NNPC Limited is responsible for overseeing approximately 455,000 barrels of crude oil produced in Nigeria. This represents Nigeria’s share of oil production from various agreements made with local and international oil companies.
Kyari acknowledged that production by the NNPC has faced challenges in recent weeks, resulting in a decline. However, he assured that efforts are underway to address these issues.
In April, Nigeria’s oil production dropped to around 1 million barrels per day, falling behind Angola, an African peer.
The Nigerian oil and gas industry has been grappling with insecurity and sabotage of its infrastructure in the Niger Delta region. This has compelled international oil companies to suspend production from onshore and shallow water fields.
Regarding investment concerns within the sector, the NNPC CEO expressed that partners of the corporation are hesitant to invest without guarantees of safety.
Mele Kyari emphasized that NNPC is dedicated to tackling security challenges hindering oil production and distribution, and ensuring a conducive environment for investment. To this end, the Nigerian government has sought the assistance of private security firms, some of which have involvement from former militants to help tackle the challenges faced.
NNPC Begins Oil Exploration in Nasarawa
The Nigerian National Petroleum Company (NNPC) Limited has commenced drilling the initial section of an oil well in Nasarawa State, situated in the North Central region of Nigeria, following the discovery of a commercially viable deposit of this precious resource.
In January, NNPCL made an announcement indicating that this significant find was a continuation of their ongoing endeavors in oil exploration within the inland basins of the country. They further disclosed their plans to initiate drilling activities for the first oil well in Nasarawa State, which began in March 2023.
Reliable reports indicate that NNPC is undertaking strategic measures to explore untapped regions with the aim of augmenting the nation’s oil production capacity.
NNPC has articulated its comprehensive blueprint for frontier exploration services, encompassing various potential areas of oil prospecting. These areas include states in the Northern region such as Niger, Nasarawa, Sokoto, Borno, Yobe, Adamawa, Bauchi, and Gombe. Furthermore, NNPC has also placed significant emphasis on the Anambra basin as a target location for further oil discovery endeavors.