financetom
Business
financetom
/
Business
/
Nigeria's Dangote Refinery, others seek 597,700 bpd of oil amid tight supply
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Nigeria's Dangote Refinery, others seek 597,700 bpd of oil amid tight supply
Aug 12, 2024 2:13 AM

LAGOS, Aug 12 (Reuters) - Nigerian refineries including

the Dangote Refinery have raised their domestic crude

requirements for the second half of 2024 to 597,700 barrels per

day from 483,000 bpd in the first half, the national oil

regulator said, despite tight domestic supply.

The Nigerian Upstream Petroleum Regulatory Commission

(NUPRC) was only able to help secure 177,777 bpd from oil

producers in the first six months of the year, way below what

the refiners had asked for, it said in a statement released on

Friday.

The refineries' rising crude requirements and oil producers'

struggle to meet demand has put the 650,000-bpd Dangote Refinery

in particular at odds with the regulator.

Dangote Refinery has accused the Nigerian Upstream Petroleum

Regulatory Commission (NUPRC) of failing to enforce a law that

requires oil producers to supply domestic refiners, saying in a

statement on Friday that lax enforcement was raising its

operational costs.

The refinery, which is the largest in Africa, says it is

having to increase crude imports due to the insufficient

domestic supplies and this could impact its ambitions this year

and its long-term prospects.

The NUPRC said oil producers could not satisfy the demands

because some had operational challenges while others pledged

most of their output to traders who financed drilling. It also

said forcing them to raise their supply would violate their

contracts.

In its statement on Friday, the regulator also projected

national average crude oil production of 1.7 million bpd by

December 2024, higher than the 1.57 million bpd it projected for

January through July, which producers did not meet.

"This comprehensive data provides insight into the projected

crude oil needs for the refineries, crucial for understanding

the energy landscape in Nigeria for the second half of 2024,"

Gbenga Komolafe, head of the NUPRC said in the statement.

NUPRC data showed that eight refineries are expected to be

operational from August, with a total refining capacity of

864,500 bpd, meaning that oil producers would be required to

supply over half that.

A total of 52 oil producers, including majors TotalEnergies

, Chevron ( CVX ), Shell and ExxonMobil ( XOM )

will supply the crude, mainly from their joint venture

operations with Nigerian state oil firm, the NNPCL.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Synovus beats Q2 revenue, earnings estimates; raises 2025 guidance
Synovus beats Q2 revenue, earnings estimates; raises 2025 guidance
Jul 16, 2025
Overview * Synovus Q2 revenue beats analyst expectations, per LSEG data * Adjusted EPS rises 28%, exceeding analysts' estimates, per LSEG data * Co raises full-year 2025 earnings guidance, citing strategic confidence Outlook * Synovus raises full-year 2025 earnings guidance, without giving specific details Result Drivers * LOAN GROWTH - Funded loan production surged 60% year-over-year, driving 8% annualized loan...
MP Materials Stock Is Sliding After Hours: Here's Why
MP Materials Stock Is Sliding After Hours: Here's Why
Jul 16, 2025
MP Materials Corp ( MP ) shares are trading lower in after-hours on Wednesday after the company announced a proposed public offering. What Happened: MP Materials ( MP ) said it commenced a $500 million underwritten public offering of its common stock. The company expects to grant the underwriters a 30-day option to buy up to an additional 15% of the shares sold in...
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Aug 17, 2025
SYDNEY, Aug 18 (Reuters) - Google agreed on Monday to pay a A$55 million ($35.8 million) fine in Australia after the consumer watchdog found it had hurt competition by paying the country's two largest telcos to pre-install its search application on Android phones, excluding rival search engines. The fine extends a bumpy period for the Alphabet-owned internet giant in Australia,...
Starwood Property Trust Launches Public Offering of Common Stock
Starwood Property Trust Launches Public Offering of Common Stock
Jul 16, 2025
05:14 PM EDT, 07/16/2025 (MT Newswires) -- Starwood Property Trust ( STWD ) said Wednesday it is launching an underwritten public offering of 25.5 million shares of its common stock. The underwriters will also have a 30-day option to purchase up to an additional 3.825 million shares from the company. Starwood said it plans to use the proceeds to help...
Copyright 2023-2026 - www.financetom.com All Rights Reserved