The National Oil Company of Libya, also known as NOC, has denied holding negotiations to supply crude oil to any local refinery in Nigeria.
In a statement on its official Twitter (now X) account, NOC said on Sunday that the firm is not in any agreement to export to crude oil to Nigeria.
A senior executive with Nigeria’s Dangote refinery stated last week that it was in discussions with Libya to secure crude for the 650,000 barrels per day plant.
However, NOC said such conversation is not ongoing with any refinery in Nigeria.
“The National Oil Corporation denies that it is negotiating or engaging in any talks regarding the supply of crude oil to an oil refinery in Nigeria.
“The National Oil Corporation also confirms that it is committed to its contracts with its international partners and is committed to the legal mechanism for selling Libyan oil raw materials and that it does not operate with an immediate sales mechanism. In addition, the process of determining raw material prices is carried out through a committee of experts and is approved by the Corporation and the Ministry of Oil and Gas,” NOC said.
Devakumar Edwin, the Vice President of Dangote Industry Limited (DIL), revealed this information in an interview with Reuters.
Edwin said the strategic move is aimed at ensuring a steady supply of crude to meet the refinery’s growing demand.
In addition to Libya, the refinery is also exploring crude supply options from Angola. This diversification strategy is crucial given the Nigerian National Petroleum Corporation (NNPC) Limited’s inability to consistently meet the refinery’s 650,000bpd requirement.
“We are talking to Libya about importing crude.
“We will talk to Angola as well and some other countries in Africa,” Edwin said.
What you should know
Since beginning operations in January, Dangote refinery has faced difficulties securing adequate crude supplies in Nigeria.
Despite being Africa’s largest oil producer, the country struggles with theft, pipeline vandalism, and low investment.
As a result, Dangote has resorted to importing crude from as far as Brazil and the United States.
The Dangote Refinery, located in the Lekki Free Zone near Lagos, Nigeria, is one of the largest oil refineries in the world. Initiated by the Dangote Group, it aims to meet Nigeria’s domestic demand for refined petroleum products, reducing the country’s dependence on imported fuel.
The refinery’s projected capacity is 650,000 barrels per day, which is expected to transform Nigeria from an importer to a net exporter of refined petroleum products.
