Latest news with #BayoOjulari
Business Insider
6 days ago
- Business
- Business Insider
Nigeria's national oil company sets conditions for crude oil supply to Dangote refinery
This comes amid ongoing efforts by the Nigerian government to reduce its dominance in the private oil and gas sector and foster a more liberalised market structure. Group Chief Executive Officer of NNPCL, Bayo Ojulari, disclosed this in a recent interview with Bloomberg, where he addressed the ongoing conversation around domestic crude supply to Africa's largest refinery. 'First of all, Dangote Refinery is a commercial investment, so the refinery has the flexibility to import crude for its survival,' Ojulari said. He explained that while the government is committed to improving local crude supply to the refinery, the process must remain market-driven. 'If you look at it commercially, we have to do more to ensure that there is a balance in terms of the crude coming from domestic; we are working on that, and we think that will improve, ' he said. 'But what we want to do is move away from government domination in private sector businesses. We want the private to have freedom. If Nigeria is to provide crude oil supply to Dangote Refinery, it will be on a commercially willing buyer and willing seller basis, ' Ojulari added. His comments come amid renewed efforts by the Nigerian government to foster a more liberalised oil and gas industry and reduce direct state control in private sector operations. Dangote refinery targets full local crude supply by 2025 Dangote Refinery, with a refining capacity of 650,000 barrels per day, is the largest single-train refinery in Africa and among the largest globally. The Lagos-based facility is expected to meet Nigeria's domestic fuel needs and significantly reduce reliance on petroleum imports. In a separate interview with Bloomberg, Devakumar Edwin, President of Dangote Industries, said the refinery aims to achieve 100 percent domestic crude supply by December 2025. The push for local supply aligns with a directive issued by President Bola Ahmed Tinubu in July 2024 for crude oil sales to the refinery to be transacted in local currency (naira), a move implemented in October 2024. In Q1 2025, the country's Technical Sub-Committee on Crude and Refined Product Sales in Naira confirmed that the policy would continue indefinitely.
Business Insider
12-07-2025
- Business
- Business Insider
Nigeria's NNPC considers refinery sale despite billions spent on repairs
Bayo Ojulari, Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, says efforts to revive Nigeria's state-owned refineries are becoming 'a bit more complicated.' Efforts to revive Nigeria's state-owned refineries are encountering increased complications, according to the CEO of NNPC Limited, Bayo Ojulari. Despite significant investments into modernizing refinery technology, expected improvements have yet to be realized due to unforeseen challenges. The Port Harcourt refinery continues to face operational issues, requiring periodic shutdowns for maintenance following its initial restart. The Nigerian National Petroleum Company (NNPC) Limited is weighing the option of divesting its state-owned refineries, following years of expensive rehabilitation efforts that have produced little progress. Speaking to Bloomberg on the sidelines of the 9th OPEC International Seminar in Vienna, the Group Chief Executive Officer of NNPCL, Bayo Ojulari, said the NNPC is currently reassessing its refinery strategy, with plans to complete the review by the end of the year. What Bayo said: 'So refineries, we made quite a lot of investment over the last several years and brought in a lot of technologies. We've been challenged, ' he said. 'Some of those technologies have not worked as we expected so far. But also, as you know, when you're refining a very old refinery that has been abandoned for some time, what we're finding is that it's becoming a little bit more complicated," 'So we're reviewing all our refinery strategies now. We hope before the end of the year, we'll be able to conclude that review. That review may lead to us doing things slightly differently.' His comments come amid renewed scrutiny of the Port Harcourt refinery, which NNPC announced had begun crude oil processing on November 26, 2024. However, the plant was shut down again in May for maintenance. Several billions of dollars have been pumped into reviving Nigeria's state-owned refineries. In March 2021, the federal government approved $1.5 billion for the rehabilitation of the Port Harcourt refinery. Later that year, the Federal Executive Council (FEC) also approved $1.48 billion for the phased rehabilitation of the Warri and Kaduna refineries, with timelines of 21, 23, and 33 months respectively. Yet, despite the heavy investment, the facilities are still not producing any refined products. Africa's richest man and owner of the world's largest single-train refinery, Aliko Dangote, recently expressed scepticism about the viability of Nigeria's state-owned refineries in Port Harcourt, Warri, and Kaduna, despite an estimated $18 billion reportedly spent on their rehabilitation over the years.
Business Insider
13-05-2025
- Business
- Business Insider
NNPC to resume crude oil drilling in northern Nigeria, confirms peace with Dangote refinery
The Nigerian National Petroleum Company Limited (NNPCL) has announced plans to resume crude oil drilling in northern Nigeria. The Nigerian National Petroleum Company Limited (NNPCL) is resuming crude oil drilling in northern Nigeria. The site is estimated to hold over one billion barrels of crude oil and 500 billion cubic feet of natural gas. Collaboration with companies, including the resolution of disputes with Dangote Group, is expected to enhance the project's success and impact. According to the company's new Group Chief Executive Officer, Bayo Ojulari, the Kolmani drilling project, located on the boundary between Bauchi and Gombe states, is expected to deliver significant benefits to Nigerians once completed. ' NNPC will continue oil drilling in the Kolmani field and will continue the work on the AKK gas pipeline from Ajaokuta to Kaduna to Kano. The companies working on the projects will continue, and new ones are also welcome," he said. 'The projects are critical in boosting the economy, and the impact will be felt by all Nigerians. By next month, people will begin to see. We will start work on the AKK gas pipeline and the Kalmoni. ' Oil discovery in the north In 2019, NNPC announced the discovery of hydrocarbon deposits at the Kolmani River II Well, located in the Upper Benue Trough within the Gongola Basin in the country's northeast. This marked the first major oil find in Northern Nigeria and laid the foundation for the Kolmani Integrated Development Project, a strategic initiative to harness the region's hydrocarbon potential. By 2022, the government launched commercial oil drilling in the area. Authorities said the project was expected to attract foreign investment and generate employment for local communities. The site is estimated to hold over one billion barrels of crude oil and 500 billion cubic feet of natural gas, with investment commitments already totalling $3 billion. Dangote, NNPCL resolve feud The relationship between Dangote Group and the Nigerian National Petroleum Company Limited (NNPCL) has been tense in recent years, largely due to disagreements over issues such as the controversial Naira-for-Crude deal, which faced inconsistencies under previous NNPCL leadership. However, according to Mr. Ojulari, the rift has now been resolved. ' We, as Nigerians, must hail Dangote's courageous efforts. Whatever he is investing, he is doing it in Africa. We have addressed the feud between the NNPC and the Dangote Refinery. Very soon, people will start seeing the impact."
Arabian Post
25-04-2025
- Business
- Arabian Post
US-China Trade Confrontation Disrupts Global Shipping Routes
A sharp decline in container traffic from China to the United States has emerged, as the latest round of tariffs imposed by the Trump administration triggers significant shifts in global trade flows. Shipping data and industry reports indicate a substantial drop in U.S. imports from China, with container bookings falling by approximately one-third since early April, according to Hapag-Lloyd, the world's fifth-largest container-ship operator. The downturn follows the White House's implementation of a 145% tariff on Chinese goods, a move that has prompted retaliatory measures from Beijing, including a 125% tariff on U.S. imports. These escalating trade tensions have led to a significant reduction in scheduled vessels from China to the United States, with a reported 33% year-over-year decline for the week ending May 10. Major U.S. ports, particularly Los Angeles and Long Beach, are experiencing notable decreases in import volumes. Port Optimizer, a daily ship tracking system, recorded a 29% decline in freight vessels departing China for Southern California for the week ending May 3. This reduction in maritime traffic is mirrored by a broader contraction in global container shipping volume, projected to fall by 1% due to the current trade policies, marking only the third such drop since 1979. The impact of these tariffs extends beyond shipping, affecting various sectors of the U.S. economy. Retailers and manufacturers, including Walmart, Target, and Home Depot, have warned of potential price increases and product shortages, particularly in industries heavily reliant on Chinese imports such as toys, electronics, clothing, and pharmaceuticals. These companies had previously stockpiled goods in anticipation of the tariffs, but the sustained trade barriers are now leading to supply chain disruptions reminiscent of pandemic-era shortages. See also Bayo Ojulari Appointed as NNPC's New Group CEO In response to the declining demand, container lines are adjusting their operations. The OCEAN Alliance, comprising China COSCO, Evergreen, CMA CGM, and OOCL, has reduced capacity on transpacific services, while THE Alliance, including Hapag-Lloyd, Ocean Network Express, and YangMing, has ended certain services and downsized others. Additionally, the 2M alliance, consisting of Maersk and MSC, has consolidated Asia-East Coast services with Israeli line ZIM to manage the risk associated with the U.S.-China trade war. The trucking industry in the United States is also feeling the effects of the trade slowdown. While there has been a temporary surge in shipments due to businesses stockpiling goods, experts predict flat volume growth and minimal rate hikes through 2025. Transportation stocks have suffered significant declines, and key economic indicators such as U.S. manufacturing and housing permits have weakened, signaling a challenging road ahead for the sector. China, meanwhile, is preparing for a prolonged economic conflict with the United States. Despite President Trump's softened rhetoric on the trade war, Beijing remains resolute, cutting back on U.S. imports and pausing some exports. The Chinese government is mobilizing national unity around a strategy of economic self-reliance and resistance against what it frames as American 'bullying.' China is also leveraging its dominance in rare-earth minerals as a strategic tool, potentially impacting U.S. manufacturing and technology sectors.
BBC News
02-04-2025
- Business
- BBC News
Bayo Ojulari: Nigeria's Bola Tinubu names ex-Shell boss to head NNPC in major overhaul
Nigeria's president has appointed Bayo Ojulari - a former Shell executive - to lead the state-owned oil company, as part of sweeping reforms aimed at cleaning up the sector dogged by allegations of corruption, pollution and decades-long Ojulari was picked in a "crucial" overhaul of the Nigerian National Petroleum Company (NNPC), the presidency said on added that the restructure - which also involved the entire board being replaced - was necessary to drive economic growth in Africa's biggest oil Bola Tinubu's time in power has seen a series of economic shocks, with food and fuel prices rocketing over the past couple of years. In its statement announcing the NNPC restructure, the presidency said Tinubu wishes to boost Nigeria's oil output and refining oil production slowed to less than a million barrels per day in 2023, news agency AFP administration wants to hit two million barrels per day of oil by 2027 and three million barrels per day by with executing this mission, Mr Ojulari replaces former NNPC boss Mele Ojulari joined Shell Nigeria 1991 and during his 24 years there, he held roles within the country as well as Europe and the Middle Ojulari rose to become the Managing Director of Shell, a position he held for six years. He left the company in 2021 to join the investment advisory organisation BAT Advisory and Energy then moved to Renaissance Africa Energy Company last year. More stories on Nigeria's oil industry: Oil clean-up 'scam' warnings ignored by Shell, whistleblower tells BBCWhy Nigerians are praying for the success of a new refineryNigeria's stolen oil, the military and a man named Government Go to for more news from the African us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica
