The Managing Director/CEO of Dangote Petroleum Refinery, David Bird, has addressed the media, providing critical insights into the refinery’s operations amid global market turmoil. Below are the full key points from his briefing:
1. Fuel Supply Stability
Dangote Refinery will continue to meet Nigeria’s fuel demand despite global supply disruptions and market volatility. The refinery remains committed to ensuring product availability nationwide.
2. Domestic Refining Advantage
Domestic refining gives Nigeria supply security, ensuring the country avoids fuel shortages and queues even when global markets are disrupted. Unlike import-dependent nations, Nigeria now has a buffer against international shocks.
3. No Crude Discounts
Even under the crude-for-naira arrangement, Nigerian crude is purchased at international benchmark prices. The refinery does not receive discounted crude, contrary to some public speculation.
4. Import-Dependent Nations Worst Hit
As the global oil crisis escalates, countries relying entirely on imported refined products are the hardest hit. Nigeria’s position as a refining nation shields it from the worst effects.
5. Extreme Global Volatility
Global oil markets are experiencing extreme volatility, with crude prices rising from the mid-$60 range to nearly $120 per barrel within a single week.
6. Full Exposure to International Markets
The refinery is fully exposed to international commodity markets, including crude oil prices, freight rates, insurance, and financing costs. It operates as a commercial entity, not a subsidized one.
7. Surging Freight Costs
Freight costs have surged dramatically, with tanker costs rising from about $800,000 to roughly $3.5 million per shipment in the current market environment.
8. Production Capacity
Dangote Refinery currently operates at its full nameplate capacity of about 650,000 barrels per day, with potential to increase production to around 700,000 barrels per day as operations optimize.
The briefing underscores the refinery’s critical role in Nigeria’s energy security amid global turbulence.Get The Full, Details. .
𝗙𝗼𝗹𝗹𝗼𝘄 𝗢𝘂𝗿 𝗪𝗵𝗮𝘁𝘀𝗔𝗽𝗽 𝗖𝗵𝗮𝗻𝗻𝗲𝗹 𝗧𝗼 𝗚𝗲𝘁 𝗟𝗮𝘁𝗲𝘀𝘁 𝗡𝗲𝘄𝘀 𝗔𝘀 𝗜𝘁'𝘀 𝗗𝗿𝗼𝗽!
