Energy
CORAN Set 18-Month Deadline To End Fuel Importation
Nigerian based refineries have set an 18-month period within which they will end importation of refined petroleum products into the country, only if the Federal Government would key into their plans.
The Crude Oil Refiners Association of Nigeria (CORAN), noted that there were other refineries at different stages of completion to join the 650,000-capacity Dangote Petroleum Refinery and Petrochemical.
The CORAN’s position, The PUNCH reports, was made public by its Publicity Secretary, Eche Idoko, that the Dangote Refinery and others in the country can satisfy the fuel needs of the nation.
This interesting perspective hit the public while the news waves were being ruled by the Chief Executive of the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), Farouk Ahmed, shared the perspective that Nigeria would not stop fuel importation, so as to checkmate the Dangote Refinery’s monopoly to ensure Nigeria’s energy security.
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The CORAN’ Publicity Secretary argued that there was no way the government would tackle rising inflation if it did not address the high cost of fuel, especially by working with the local refiners.
In his words, “You can’t tackle inflation if you don’t address the pump price of petroleum products. You cannot say you have a plan to step down inflation and you are not involving the key sectors like the refineries; you have to involve us, let’s work together.
“And CORAN is saying that, in 18 months, if the Nigerian government will work with our programmes and plans, in 18 months, we can stop the importation of petroleum products completely.
“There are refineries in different stages of completion. In 18 months, we can produce what Nigeria will consume.”
According to Idoko, Nigeria has enough crude oil to feed Dangote and other refineries.
He pointed out that crude theft has been the major challenge to the upstream oil sector.
“We have the crude oil to feed these refineries and more fields are being licensed by the day. So, there will be crude to feed the refineries. Our production figure is dropping because of the crude that is being stolen daily.
“When we have local refineries, crude theft will be reduced. People steal crude through the pipelines and most of the refineries are located close to some of these fields. What this does is that the crude oil producers will no longer need to pump their crude through the pipelines to the terminal for export.
“The local refineries will just truck from the fields or get a short pipeline or barge from their fields to these places. We are losing heavily because unscrupulous elements are stealing crude from the long pipelines,” Idoko stated.
In addition, he pointed out that the international oil companies (IOCs) were supposed to sell crude oil to local refineries at a price lower than the international price.
Idoko urged the Federal Government to ensure that crude oil is sold in naira and not dollars, and maintained that this would reduce the cost of fuel production and the pressure on the local currency.
In his view, ending the importation of fuel would strengthen the naira against the dollar, and wants to see the IOCs start selling fuel directly to local refiners instead of referring them to their trading agents in Europe.
Recall that Ahmed had cautioned that Nigeria could not rely heavily on the Dangote refinery for its fuel supply.
According to him, the refinery had requested the regulator to stop giving import licenses to other marketers to be the only fuel supplier in Nigeria.
“We cannot rely heavily on one refinery to feed the nation, because Dangote is requesting that we should suspend or stop importation of all petroleum products, especially AGO and direct all marketers to the refinery, that is not good for the nation in terms of energy security. And that is not good for the market, because of monopoly,” Ahmed stressed.
However, the President of Dangote Group, Aliko Dangote, denied the allegation, wondering how he could be a monopoly when the Nigerian National Petroleum Company Limited (NNPC Ltd) was renovating government-owned refineries with $4bn.
Biztellers reports that several prominent figures and associations including the President of the African Development Bank Group (AfDB), Akinwumi Adesina; billionaire businessman, Femi Otedola; federal lawmakers; former Vice President and 2023 presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar; former Anambra State governor and 2023 Labour Party presidential candidate, Peter Obi.
Others speaking up for Dangote include the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA); the Manufacturers Association of Nigeria (MAN), have all voiced their support for the Dangote Refinery, and the Pragmatic Shareholders Association of Nigeria (PSAN).
On his part, the President of Dangote Group, Alh Aliko Dangote had decried the alleged refusal of the IOCs to supply crude to his refinery, in addition to regulatory highhandedness.
According to Dangote, his refinery would begin the supply of petrol between August 10 and 12.
It was gathered that the refinery might resort to exporting its Premium Motor Spirit (PMS) also known as petrol unless the regulators and operators of the Nigerian market show required cooperation.
The Nigerian Content Development and Monitoring Board (NCDMB) has confirmed that the Nigerian Oil and Gas Park Scheme in Emeyal-1, Ogbia Local Government Area of Bayelsa State, is moving closer to completion.
The NCDMB in a statement on Sunday under the signature of its General Manager, Corporate Communications, Dr Obinna Ezeobi, assured that the facility would become operational in the fourth quarter of 2026.
The board maintained that it is working toward the set timeline and plans to install a 2.5-megawatt Compressed Natural Gas (CNG) power plant at the park to support its take-off.
“Towards the target date, the NCDMB is set to install a 2.5-megawatt Compressed Natural Gas power plant at the park,” the statement said.
The installation of the power plant, the NCDMB added, is a key requirement for operational readiness, as it will guarantee a stable and sustainable electricity supply for industrial activities within the park.
The statement followed an assessment visit to the facility by senior officials of the board on Friday. Ezeobi noted that the inspection showed visible progress in critical infrastructure and support systems.
He explained that the tour revealed significant advancement in infrastructure development aimed at positioning the park as a major industrial hub for Nigeria’s oil and gas sector.
The inspection also confirmed steady progress across key infrastructure and support systems designed to establish the facility as a major industrial hub for the country’s oil and gas industry.
The NOGaPS project, according to the board, was conceived to deepen Nigerian content by creating a manufacturing base for oil and gas components, equipment and other inputs, while also generating employment opportunities.
“The Nigerian Oil and Gas Park Scheme was conceived to deepen Nigerian content by providing a conducive environment for the manufacturing of components, equipment and other inputs required by the oil and gas industry, while creating employment opportunities for over 2,000 persons when fully operational and stimulating economic growth,” the statement added.
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Officials said several key facilities within the park have already been completed and are ready for use. These include manufacturing shop floors, a water treatment plant, accommodation facilities, classrooms, an amphitheatre, and residential apartments for trainers, facilitators and visiting guests.
The board also confirmed that alongside the planned CNG power plant, key power infrastructure such as switchgear buildings, transformers and heavy-duty generators have already been completed.
“In addition to the CNG power plant, NCDMB has also completed key power infrastructure, including the switchgear building, transformers and heavy-duty generators,” it stated.
It was further disclosed that a contract has been awarded for sand-filling of ponds within the facility. After completion, six manufacturing sheds will be constructed on the reclaimed land for investors and service providers.
The board said environmental maintenance activities, including landscaping and routine facility upkeep, are ongoing to preserve infrastructure and ensure readiness. It added that work is focused on ensuring all supporting infrastructure and utilities required for seamless operations are in place ahead of the park’s planned operational date.
When operational, the Oil and Gas Park Scheme is expected to serve as a strategic platform for the growth of indigenous manufacturing and service companies, reduce dependence on imported oil and gas components, create employment opportunities for Nigerians and strengthen local participation across the oil and gas value chain.
The board reiterated its commitment to delivering the project in line with its mandate of developing in-country capacity and advancing Nigerian content in the oil and gas industry.
New crude grade variants, Utapate and Cawthorne, have boosted Nigeria’s crude oil production by 12.16 million barrels.
The crude grades, introduced in 2024 and early 2026, represent the latest additions to the country’s basket of crude oil grades aimed at expanding export streams and strengthening oil revenues.
Data contained in the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) monthly crude and condensate production, indicated that the Utapate crude grade produced a total of 8.75 million barrels between January and May 2026, while the newly introduced Cawthorne blend contributed 3.41 million barrels during the same period, bringing the combined output from both crude grades to approximately 12.16 million barrels.
The data also showed that Utapate has yet to achieve its projected output target announced by the government, even as production remained more than 20,000 barrels per day below the 80,000 bpd target set by operators.
The figures showed that Utapate recorded an average daily production of 55,190 barrels in January. Based on the 31-day month, this translated to a total monthly output of 1.71 million barrels.
Output increased to 57,970 barrels per day in February, yielding about 1.62 million barrels, before rising marginally to 58,020 barrels daily in March, equivalent to roughly 1.80 million barrels.
In April, the field attained its highest daily production level of 59,290 barrels, producing an estimated 1.78 million barrels during the month. Production moderated slightly to 59,170 barrels per day in May but still generated approximately 1.83 million barrels due to the longer calendar month.
However, despite the upward trend, the data indicated that Utapate remained significantly below the 80,000 barrels-per-day target. The field fell short by 24,810 barrels daily in January, 22,030 barrels in February, and 21,980 barrels in March.
The production gap narrowed to 20,710 barrels per day in April before widening marginally to 20,830 barrels in May.
The development suggests that although operators have made progress in scaling up production, the ambitious target announced earlier by the Nigerian National Petroleum Company Limited has yet to be realised.
The Utapate field, which commenced production in May 2024, had been projected to achieve 80,000 barrels per day by the end of 2025.
The Utapate crude blend was introduced into the international market by the NNPC Ltd and its partner, Sterling Oil Exploration and Energy Production Company Limited, following the lifting of the maiden cargo of 950,000 barrels destined for Spain.
Produced from Oil Mining Lease 13 in Akwa Ibom State, the crude grade possesses characteristics that have attracted international interest. It has a sulphur content of 0.0655 percent and a relatively low carbon footprint resulting from flare gas elimination.
Meanwhile, another emerging crude stream, Cawthorne, contributed 3.41 million barrels to Nigeria’s production between January and May, according to the NUPRC data.
The figures showed that Cawthorne’s average daily production rose sharply from 12,340 barrels in January to 16,450 barrels in February and 23,970 barrels in March. The field sustained the momentum in April, reaching 30,970 barrels per day before easing slightly to 28,940 barrels daily in May.
The monthly production volumes translated to 382,540 barrels in January, 460,600 barrels in February, 743,070 barrels in March, 929,100 barrels in April and 897,140 barrels in May.
The NNPC Ltd had recently announced the commencement of exports from the Cawthorne blend, describing the development as part of efforts to increase Nigeria’s crude oil production and strengthen the country’s position in the global energy market.
In a statement, the Chief Corporate Communications Officer of NNPC Ltd, Andy Odeh, said the first cargo of the new grade was lifted aboard the MT Eburones vessel for shipment to the Netherlands.
“The Nigerian National Petroleum Company Limited has commenced export of its new crude grade, Cawthorne, marking a significant milestone in the company’s drive to increase Nigeria’s crude oil production and expand its portfolio of globally competitive export streams,” Odeh said.
He added, “Cawthorne blend crude, the latest addition to Nigeria’s basket of crude grades, has an API gravity of 36.4, placing it firmly within the light, sweet category, comparable to Bonny Light, and highly valued in the global market for its superior petrol and diesel yields.”
According to him, the maiden cargo, estimated at 950,000 barrels, was exported through the Cawthorne Floating Storage and Offloading vessel located offshore Bonny, Rivers State.
“The cargo was exported via the Cawthorne Floating Storage and Offloading vessel, which is strategically located offshore Bonny. The facility enhances crude evacuation from OML 18 and strengthens Nigeria’s export reliability, operational efficiency and overall energy security,” Odeh stated.
The emergence of both Utapate and Cawthorne underscores Nigeria’s determination to diversify its crude export portfolio and maximise oil earnings. However, the latest NUPRC figures also highlight the operational challenges facing producers as they strive to convert ambitious output targets into actual barrels.
Combined, Utapate and Cawthorne contributed an estimated 12.16 million barrels of crude oil between January and May, providing additional support to Nigeria’s broader efforts to sustain production growth and improve foreign exchange earnings from the oil sector.
On Thursday, the NUPRC reported that Nigeria’s crude oil production rose above its Organisation of the Petroleum Exporting Countries quota in May 2026, with the country recording its highest crude output in 15 months amid improved operational stability and the absence of major disruptions across key oil facilities.
Data released showed that Nigeria produced an average of 1,530,354 barrels of crude oil per day in May, representing 102 per cent of the country’s 1.5 million barrels-per-day quota approved by OPEC.
When condensate production of 170,446 barrels per day was added, Nigeria’s total oil output climbed to 1,700,800 barrels per day, further strengthening the country’s position as Africa’s largest oil producer and boosting revenue.
OPEC oil output in May hit its lowest in more than two decades, a Reuters survey found, as a U.S. naval blockade cut Iran’s exports and Iran’s effective closure of the Strait of Hormuz slashed exports by other Gulf producers.
Output by the 11-member Organization of the Petroleum Exporting Countries fell by 1.06 million barrels per day month-on-month to 16.13 million bpd, the survey found.
That was the lowest monthly figure since at least 2000, according to Reuters surveys, and well below the levels seen during the COVID-19 pandemic in 2020 when demand collapsed.
The figures exclude the United Arab Emirates which quit OPEC as of May 1.
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Saudi Arabia had a further decline, although Iraq was able to increase supply due to increased domestic use, sources in the survey said.
Venezuela and Nigeria also pumped more.
Eight members of the OPEC+ producer group, which includes OPEC plus allies including Russia, had agreed to raise production in May, but the Iran war and U.S. blockade made that impossible.
The Reuters survey is based on flow data from financial group LSEG, information from other companies that track flows, such as Kpler, and information provided by sources at oil companies, OPEC and consultants.
Credit – Times of India
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