- Safiu Kehinde
The Nigerian National Petroleum Company Limited (NNPCL) has demanded for a permanent office for its staff at Dangote Refinery as part of their crude oil supply deal.
This was disclosed yesterday by Dangote Group, Oil & Gas Vice President, Devakumar Edwin, during an X Space event organized by Nairametrics.
According to Devakumar, NNPC made the demand since they will be supplying the crude, overseeing the production, and buying back the products in Naira.
While discussing progress of Premium Motor Spirit (PMS) production at the refinery, he disclosed that the NNPC intend to station 6 to 10 of its staffs permanently at the refinery.
“NNPC has informed us that they intend to station a team of 6 to 10 people permanently at our refinery.
“They’ve asked us to provide office space for them since they will be supplying the crude, overseeing the production, and buying back the products in Naira.” He said.
Devakumar noted that the discussions with NNPC are about a new model for crude supply where the refinery will buy crude from the government in Naira and sell PMS in the same currency, rather than in dollars, Nairametrics reported.
“We are still in talks with the government about receiving crude in Naira. The discussions are ongoing, and nothing has been finalised yet.
“Some unresolved issues include the pricing of crude, the pricing mechanism, and determining the appropriate exchange rate for the Naira.” He added.
Meanwhile, Devakumar expressed concern over likelihood of financial loss for the Dangote Group on account of the sales of the petroleum products to NNPC in Naira- a sacrifice he claimed Dangote is willing to take.
“Dangote said we are going to accept this because the country desperately needs foreign exchange, and the value of the Naira is deteriorating every day.
“I understand that I am going to take a loss because by the time we sell the product and convert it to dollars, the exchange rate may have worsened,” Edwin quoted Dangote to have said.
Dangote added: “I am willing to take this loss in the interest of the country. I don’t mind.
“The country is in bad shape. Someone has to take certain risks, and I am ready to face this loss, no matter how significant it may be.” He added.