The Nigerian National Petroleum Company Limited generated N336.37bn from crude oil sales in the first quarter of 2025, with Dangote Petroleum Refinery accounting for over 32 per cent of the transactions,
The details were contained in internal documents from the NNPCL, submitted at the Federation Account Allocation Committee meetings, and obtained by The PUNCH on Monday.
The documents showed that crude supplies to Dangote refinery amounted to N107.44bn within the three-month period.
The crude was sold at unit prices ranging from $74.87 to $80.34 per barrel, using exchange rates between N1,501.22/$ and N1,562.91/$.
The PUNCH further learnt that the transactions were executed using exchange rates recommended by the African Export-Import Bank.
One of the documents seen by The PUNCH read, “The Dangote domestic lifting is payable in naira based on Afrexim Bank advised exchange rate.”
The sales formed part of the naira-for-crude deal introduced by the Federal Government to ensure domestic crude supply to the 650,000-barrel-per-day Lagos-based refinery.
As part of moves to reduce the strain on the US dollar and guarantee the price stability of petroleum products, the FEC in July 2024 directed the national oil company to sell crude oil to Dangote refinery in naira, rather than in the US dollar, for an initial phase of six months.
The sale of crude oil and refined petroleum products in naira to local refineries commenced on October 1, 2024, to improve supply, save the country millions of dollars in petroleum products imports, and ultimately reduce pump prices.
However, in March, Dangote refinery said it had temporarily halted the sale of petroleum products in naira.
The refinery said the decision to halt sales in naira was “necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars”.
After an initial delay, the Federal Executive Council eventually directed the full implementation of the suspended naira-for-crude agreement with local refiners.
It stated that the initiative with local refineries is not a temporary measure, but a “key policy directive designed to support sustainable local refining.”
Following the continuation of the naira-for-crude deal, the Dangote refinery announced a further reduction in the price of Premium Motor Spirit, popularly known as petrol.
The refinery slashed its ex-depot price to N835 per litre, marking its third price cut in less than six weeks.
The latest adjustment reflects a 3.5 per cent decline in the ex-depot rate, as the refinery continues to lower costs to reflect the naira-denominated crude supply framework agreed under the renewed naira-for-crude arrangement.
Findings by The PUNCH showed that seven cargoes were delivered to Dangote refinery, totalling 915,821 barrels sourced from the Okwuibome field operated by Sterling Oil Exploration & Energy Production Company under Production Sharing Contracts.
The Okwuibome oil field, operated by SEEPCO, is a significant onshore asset located in Nigeria’s Niger Delta region. SEEPCO, a subsidiary of the Sandesara Group, has been instrumental in developing the field, contributing to Nigeria’s crude oil production through its operations.
The PUNCH earlier reported that the Federal Government, through the Nigerian Content Development and Monitoring Board, said it would take action to address SEEPCO’s alleged anti-labour practices.
The board also recalled how Sterling Oil had repeatedly violated its local content directives, stating that it would not fail to sanction firms that flagrantly flout the provisions of its laws.
The members of the Petroleum and Natural Gas Senior Staff Association of Nigeria, led by their President, Mr. Festus Osifo, staged a protest at SEEPCO’s headquarters on Victoria Island, Lagos, over the company’s alleged anti-labour practices and expatriate abuses.
Osifo criticised the management of Sterling Oil for abusing the expatriate quota system, which he said led to discrimination against skilled Nigerian workers in the oil and gas sector.
He accused the company of discriminatory practices, monopolising jobs that Nigerians are qualified to perform with the Indian nationals.
The NCDMB expressed delight that PENGASSAN served as a whistleblower over the alleged expatriate quota abuse by the management of Sterling Oil, assuring the union and the general public that it would investigate the matter exhaustively and take necessary actions.
The board confirmed that it had “sanctioned SEEPCO a few years ago for gross violations of the NOGICD Act.” It added that it had recently started engaging with the company for the same reasons.
Sterling Oil was reported to have sought an out-of-court settlement and committed to addressing compliance issues and undertaking remediation in 2020.
It reportedly completed the training of 40 Nigerians in 2022; however, the employment commitment was not fulfilled. The NCDMB said it has requested statutory submissions from SEEPCO and scheduled a performance review session for March 2025.
Amid the scandal, the company’s field’s output plays a crucial role in the country’s oil sector, with its crude being supplied to refineries, including the Dangote Petroleum Refinery.