President of Dangote Refinery, announced on Sunday in Lagos that the refinery is poised to begin producing petrol starting August 2024, following the resolution of significant challenges in its crude oil supply chain with assistance from the Nigeria National Petroleum Company Limited (NNPCL) and the federal government.
Speaking during a press briefing at the refinery located in the Lekki Free Trade Zone, Lagos, Dangote revealed that the recent intervention by the federal government successfully addressed the supply issues that had hampered petrol production.
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The announcement comes after Dangote Industries Limited (DIL) raised concerns about international oil companies (IOCs) allegedly obstructing efforts to secure local crude for the refinery. Devakumar Edwin, Vice President of Oil and Gas at DIL, disclosed earlier grievances, stating that IOCs appeared intent on undermining the refinery’s operations by imposing excessively high premiums or declaring crude unavailable.
These challenges led to a temporary reduction in production output and necessitated the importation of crude from distant sources such as the United States, resulting in increased production costs.