The Nigerian National Petroleum Commission Limited (NNPCL) has requested for a permanent presence at the Dangote Refinery.
The Vice President (Oil & Gas) of Dangote Group, Devakumar V.G. Edwin revealed this on Thursday on an X Space event organized by Nairametrics titled “Unlocking how Dangote Refinery shapes and price”.
Edwin also talked about the progress of Premium Motor Spirit (PMS) production at the Dangote Refinery.
According to Edwin, the request made by the NNPCL to have a permanent presence at the Dangote Refinery is part of the crude oil agreement.
“NNPCL has informed us that they intend to station a team of about six to 10 people permanently at our refinery,” Edwin said.
“They have asked us to provide office space for them since they will be supplying the crude, overseeing the production, and buying back the products in naira.”
He explained that the request aligns with the NNPCL’s aim to closely monitor the entire process, ensuring that crude is supplied and processed efficiently while securing a steady flow of PMS for Nigeria.
Edwin gave more information, adding that the talks with the NNPCL revolve around a new model for crude supply.
According to him, the discussions centre around the refinery buying crude from the Federal Government in naira and selling PMS in the same currency rather than in dollars.
He stated that the negotiations are still on with critical aspects like crude pricing and the naira exchange rate yet to be finalized.
“We are still in talks with the government about receiving crude in naira. The discussions are ongoing and nothing has been finalized yet,” he said.
“Some unresolved issues include the pricing of crude, the pricing mechanism, and determining the appropriate exchange rate for the Naira.”
The Dangote Refinery has so far exposed the deep rot in the runnings of the NNPCL and the overall corruption in the oil sector.
