Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), has addressed recent concerns regarding the company’s role in the development of local refineries, emphasizing that NNPCL is not working against the prosperity of domestic refineries.
He made this statement while outlining Nigeria’s energy future during the opening of the 42nd Annual International Conference and Exhibition of the Nigeria Association of Petroleum Explorationists (NAPE) in Lagos. The conference, themed “Resolving the Nigeria Energy Trilemma: Energy Security, Sustainable Growth, and Affordability,” took place on Monday.
Kyari’s remarks come amid ongoing controversies involving oil marketers and the Dangote Refinery. The NNPCL CEO clarified that NNPCL is a part-owner of Dangote Refinery, underscoring that this investment is a strategic move to bolster domestic fuel supply rather than undermine local refining efforts.
In a recent interview with Bloomberg, Aliko Dangote, the owner of Dangote Refinery, revealed that the NNPCL had initially agreed to take a 20% stake in the refinery. However, this share was later reduced to 7.2%. Dangote explained that the original agreement, worth $2.79 billion and including an upfront payment of $1 billion, had been renegotiated. The revised deal no longer involved a crude oil supply arrangement, with NNPCL opting instead to pay the balance of the deal in cash rather than through crude deductions.
Despite these changes, Kyari reaffirmed that NNPCL is committed to collaborating with private refineries, including Dangote’s, to ensure a reliable and affordable supply of petroleum products. He also noted that the NNPCL aims to support the stabilization of the local currency by exploring Naira-for-crude transactions to manage foreign exchange markets effectively.
Furthermore, Kyari highlighted NNPCL’s ongoing efforts to expand gas infrastructure, including key projects like the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline and the Obiafu-Obrikom-Oben (OB3) Gas Pipeline.
He also pointed to the development of cleaner energy solutions such as Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG). Kyari also disclosed that NNPCL has ceased importing refined petroleum products and is now sourcing fuel exclusively from domestic refineries, including the Dangote Refinery and other local facilities.
