Energy
BP, Trafigura, Vitol Lead Global Offtake Of Dangote’s Refined Products
The Lagos based, 650,000-barrel-per-day Dangote Petroleum Refinery and Petrochemicals (DPRP) might be struggling for real acceptance in Nigeria’s domestic market, but the international markets appear to have embraced it with both hands.
As at Wednesday, November 6, 2024, three global oil dealers account for as much as 75 percent of refined products being lifted from the DPRP.
In a development touted as reshaping petroleum trading between Africa and Europe, Vitol Group, Trafigura Group, and BP Plc were listed by Bloomberg as the dominant buyers of fuels from the DPRP.
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Going by the data, it can be seen that the three global dealers accounted for the bulk of the plant’s shipments since flows began ratcheting up around the middle of 2024.
The report was backed by data from Precise Intelligence, a new oil-and-gas trading analytics firm based in Geneva.
The data showed refined products offtake from February 27 to October 10 with other customers, and indicated that the Nigerian market took 25 percent of total fuel purchases from the DPRP in the period under review.
Recall that the DPRP on starting operations, kick-started the production of diesel, aviation fuel, and LPG before subsequently progressing to the production of Premium Motor Spirit (PMS) (petrol).
The management of the DPRP has been consistent in expressing confidence that as soon as it becomes fully operational, it would peak at processing up to 650,000 barrels a day of crude into products including gasoline and diesel.
The implication is that at its peak, the DPRP would be the biggest single plant in Europe or Africa, conferring on it the capacity to reshape the regions’ oil and fuel trading.
Oil industry pundits note that the coming on stream of the DPRP has already trimmed a glut of Nigerian crude.
Analysis of the report showed that the refinery has loaded almost 6 million tons of fuel since starting up.
This is equivalent to almost 45 million barrels, loading rates averaged about 35,000 tonnes a day in October, its data showed.
The DPRP itself said late last month that the refinery had reached processing rates of about 420,000 barrels a day of crude.
Stakeholders are paying close attention, which sees the composition of fuel cargoes loading from the DPRP closely watched because it offers clues into where the refinery is at in terms of starting up different processing units.
On the products sold, the figures show that automotive gas oil — commonly known as diesel — is the largest cargo type being lifted, accounting for the highest proportion of shipments. This is followed by fuel oil, which ranks second in terms of volume.
Together, these two products make up more than 60 percent of the total output being collected from the plant.
Other significant fuel types being processed include gasoline, which is used for cars and other light vehicles, and jet fuel, primarily utilised by the aviation industry for aircraft.
As a direct implication of the Federal Government’s Foreign Direct Investment drive, the Royal Dutch Shell has completed the final investment decision on the deep offshore Bonga North project in Nigeria.
Biztellers reports that the Bonga North will be a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility which Shell operates with a 55% interest.
Shell’s Integrated Gas and Upstream Director, Zoë Yujnovich, said, “This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio”.
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It was gathered that the Bonga North project involves drilling, completing, and starting up 16 wells (8 production and 8 water injection wells), modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO.
The company is optimistic that the project will sustain oil and gas production at the Bonga facility.
The Bonga North currently has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent (boe) and will reach a peak production of 110,000 barrels of oil a day, with first oil anticipated by the end of the decade.
In addition, the Bonga North will help ensure Shell’s leading Integrated Gas and Upstream business continues to drive cash generation into the next decade.
Chevron Nigeria Limited (CNL), has received an award as “Energy company of the year (2024)” for its Environmental Sustainability and Corporate Responsibility accomplishments.
The award presented by the Nigerian News Direct newspaper, on Friday December 6, 2024, and was received by Manager Communications, Chevron Nigeria and Mid-Africa Business Unit, Victor Anyaegbudike, at a colourful event at the Grand Ballroom of the Oriental Hotel, Lagos.
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The organizers of the award noted that Chevron has implemented the “Protecting People and the Environment” policy, which aims at preventing injuries, illnesses, and environmental incidents. They also referenced that the company has achieved 97% gas flaring reduction in its operations in Nigeria, while implementing waste management and environmental conservation programs.
According to the media organization, Chevron Nigeria has also invested millions of dollars in community development programs, supporting education, health and economic development initiatives that have benefited thousands of people, while ensuring diversity, inclusion, and employee engagement in its business operations.
Receiving the award from the Lagos State Commissioner for Information and Strategy, Gbenga Omotosho, Anyaegbudike thanked the organizers for the honour, and reiterated Chevron’s commitment to continue to develop, affordable, reliable and ever-cleaner energy that enables human progress around the world.
The Shell Companies in Nigeria have restated commitment to supporting Nigerian businesses in the quest to grow local content for the domestic oil and gas industry.
The company made the assertion at the recent Practical Nigerian Content (PNC) forum in Yenagoa, Bayelsa State, and committed to doing this through contract awards and scaling up of expertise.
Biztellers reports that over 700 oil and gas entities participated in the 13th edition of the PNC Forum
The four-day conference with the theme “Deepening the Next Frontier for Nigerian Content Implementation” began today and will see the hosts, Nigerian Content Development and Monitoring Board (NCDMB) and participating companies review progress on the development of Nigerian content pertaining to the implementation of the Nigerian Oil and Gas Industry Development (NOGICD) Act since it was enacted in 2010.
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The Shell companies in Nigeria were the forum with a strong message of support for Nigerian companies, having awarded contracts worth $1.98 billion to the businesses in 2023 in continuing effort to develop Nigerian content in the oil and gas industry.
The contracts, awarded by the Shell Petroleum Development Company of Nigeria Limited (SPDC), Shell Nigeria Exploration and Production Company Limited (SNEPCo), and Shell Nigeria Gas (SNG) present a three percent increase from the 2022 performance of $1.92 billion.
Business Opportunity Manager for SNEPCo’s Bonga South-West Aparo Project, Olaposi Fadahunsi, representing SNEPCo Managing Director, Ron Adams, told participants at the opening of the forum that several benefitting companies had taken advantage of the patronage to expand their operations and improve their expertise and financial strength.
“Shell companies execute a large proportion of their activities through contracts with third parties, and Nigeria-registered companies have been key beneficiaries of this policy aimed at powering Nigeria’s progress,” Fadahunsi said. He commended the Nigeria Content Development and Monitoring Board (NCDMB) for ensuring compliance with the Nigerian Content Act.
In addition to contract awards, Shell companies have implemented projects under the Human Capital Development Fund, including the Niger Delta University learning centre and digital library project and the Federal University of Technology Information Technology Hub. Both projects were inaugurated this year, in collaboration with SPDC Joint Venture partners – Nigeria National Petroleum Company Limited (NNPC), TotalEnergies and Nigeria Agip Oil Company Limited (NAOC).
Other projects include the University of Lagos Geosciences Centre of Excellence, Nigeria Diving School and funding of ongoing research at the University of Ibadan to develop a synthetic-based drilling fluid.
The Shell Companies in Nigeria also continue to develop indigenous manpower through scholarship programmes with over 3,772 undergraduate and 109 Niger Delta post graduate scholarships since 2016.
Fadahunsi added: “As we speak, beneficiaries of the 13th edition of the Niger Delta Post Graduate Scholarship awards are pursuing their studies in the United Kingdom. The employability rate of the scheme is high with over 98% of the graduates who won the awards securing employment in the oil and gas industry, academia and Information Technology, among other sectors, within one year of completing their studies. Nigerian content will continue to be an important part of Shell operations.”
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