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Nigeria's Dangote Refinery hits 85% refining capability, executive says

Nigeria's Dangote Refinery is now operating at 85% capability and is on course to provide Europeanstandard items by January, an executive said on Friday.

The 650,000-barrel-per-day Dangote oil refinery constructed by Nigerian billionaire Aliko Dangote in Lagos intends to compete with European refiners when operating at complete capability however had actually been having a hard time to protect enough crude in your area.

We have actually increased to 550,000 bpd, that is 85% capability in unrefined distillation, Edwin Devakumar, head of the refinery, told Reuters.

The refinery was required to source crude from global markets following a dispute with the Nigerian state-oil company the NNPC over an unrefined supply deal under which Dangote had actually agreed to offer a 20% stake in the refinery to NNPC for $2.76 billion.

Of this, we agreed that they will just pay $1 billion while the balance will be recuperated over a period of five years through deductions on petroleum that they provide to us and from dividends due to them, a Dangote spokesperson stated.

Sadly, NNPCL was later on unable to supply the agreed 300,000 barrels a day of unrefined given that they had devoted a. majority of their crude cargoes to investors with the. expectation of higher production which they were unable to. achieve, the spokesperson stated in a declaration on Wednesday.

Dangote Refinery started processing crude in January into. items consisting of diesel, naphtha and jet fuel, and started. processing petrol in September.

It still faces difficulties distributing the products at home. with regional fuel traders and even the NNPC importing fine-tuned. items. The NNPC just recently said it had rebooted its 60,000 bpd. Port Harcourt refinery.

Dangote Refinery cut the price of its fuel to 899.50 naira. ($ 0.58) per litre on Thursday from 970 naira to relieve. transportation expense during the holiday. ($ 1 = 1,541.4300 naira)

(source: Reuters)