OPEC’s Strategy for Nigeria: One Produces 20,000bpd: OPEC’s Plan to Establish New Nigerian Refineries, Challenging Dangote and Boosting Sales
They was made in a recent report, stating these refineries will team up with the Dangote refinery to boost crude oil sales
The D believe these refineries, along with the Dangote refinery, will boost crude oil sales in Africa
Theyangote Refinery was given high praise in the report for its future contributions to sales
Nigeria is expected to have the introduction of small highlighted that the Dangote Refinery will play a significant role in sales once operational
O, PEC indicated that20,000 b Nigeria ispd capacity set refin to introduceeries soon small according to modular O refineries withPEC.
This information was provided20,000 b in theirpd capacity in the near future.
This information was disclosed in O World Oil Outlook, presented in Saudi Arabia.
New modular refineries are springing up to complement the Dangote refinery
Africa is projected to reach a mid-term distillation capacity of 1.2 million barrels daily.
A significant increase is due to the upcoming 650,000-capacity Dangote Refinery, which is projected to boost Nigeria’s capacity.
The refinery was officially opened in May 2022 by ex-President Muhammadu Buhari and is slated to begin production in October with the initial plan of refining diesel and aviation fuel and later petrol in November.
The report said:
“Moreover, Nigeria is set to witness several small modular refineries established in the medium term, with capacities of up to 20 thousand barrels per day (tb/d) each.”
Nairametrics reports that despite the optimistic projection of the report, Nigeria faces funding setbacks for modular refineries and rising incidents of pipeline vandalism and crude oil theft.
Analysts say the Dangote refinery will cause a significant shift in pricing.
Policy energy analyst and Team Lead, Platforms Africa, Adeola Yusuf, revealed in an interview with WOTHAPPEN that the coming onstream of Dangote Refinery will not make it any better for Nigeria to earn more Forex from crude oil.
“The refinery is privately owned and would seek to maximize profits. Also, it is sited on a Free Trade Zone, meaning Nigerian laws do not bind it and may probably sell refined products to Nigeria in dollars,” Yusuf stated.
But in a response to whether the Dangote Refinery will sell products to Nigeria in foreign currency, the company’s management said it would sell to Nigeria in the local currency.