NNPC Ltd. and Dangote Group reaffirm strategic partnership for refinery operations and supply chain in Nigeria

The partnership aims to create synergies in three areas: Upstream Sourcing (crude oil and natural gas), Crude and products trading, and Shipping and gas supply. The intent is to cooperate on supply chain decisions and setting prices. The government of Nigeria has implemented policies encouraging partnerships to develop domestic refining capacity. The end-beneficiaries are expected to be consumers and the entire oil and gas industry through scale efficiencies, assisting in providing a stable supply chain of refined petroleum products and developing value-added economic activities within Nigeria. Quote: "The key benefit will come from joint work streams to create synergies among our asset, infrastructure, capital, and market capabilities to grow in three areas: Upstream Sourcing (crude oil and natural gas). Crude and products trading. Shipping and gas supply." Quote: "The intent of both companies was clear: to demonstrate how two different entities can cooperate to develop mutually beneficial agreements in making supply chain decisions and setting prices so that one entity does not have to take the burden of either." Quote: "The government of Nigeria has established a more favorable climate for investment by implementing policies that have encouraged investors to return to the table and engage in partnerships. Specifically, the policy changes have provided the opportunity for entities to enter into partnerships that reduce duplication and allow them to focus their efforts on developing domestic refining capacity." Quote: "Both sides are in agreement that the end-beneficiaries of this partnership will be both consumers and the entire oil and gas industry (not just shareholders) through scale efficiencies. This will assist in providing a stable supply chain of refined petroleum products and developing the potential to grow value-added economic activities within Nigeria."