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NNPC LTD READY FOR INITIAL PUBLIC OFFER

The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced it is in the final stage of preparations for listing on the capital market, in compliance with the Petroleum Industry Act (PIA) 2021. The disclosure was made by the Company’s Chief Finance and Investor Relations Officer (CFIO), Mr. Olugbenga Oluwaniyi, in a statement during a consultative meeting with partners at the NNPC Towers in Abuja on Thursday. Oluwaniyi stated that NNPC Ltd is currently engaging with prospective partners in an exercise termed “NNPC Ltd. IPO Beauty Parade” as required by capital market regulations ahead of the Initial Public Offer (IPO). He explained that the IPO Beauty Parade is designed to assess potential partners and identify how they can support the company in the listing process. In a statement signed by Chief Corporate Communications Officer of NNPC Ltd, Olufemi O. Soneye, Oluwaniyi listed the key areas of partnership needed, which include Investor Relations, IPO Readiness Advisers, and Investment Bank Partners. He added that the company offering the best terms for project collaboration would be selected for each of the three categories. An IPO involves the sale of a company’s shares to institutional investors as part of a public offering. The PIA mandates NNPC Ltd to list its shares in the capital market in accordance with the Company and Allied Matters Act (CAMA) 1990.

FIRE OUTBREAK HITS PORT HARCOURT REFINERY IN RIVERS STATE

A fire outbreak occurred at the Port Harcourt refinery in Rivers State on Wednesday, according to the National President of Petroleum Retailers Outlets Owners Association of Nigeria, Billy Gillis-Harry. The fire was quickly contained within five minutes of breaking out. “Yes, it is true that there was a fire outbreak in the Port Harcourt refinery, but it was contained in 5 minutes,” Gillis-Harry said. However, the Nigerian National Petroleum Company (NNPC) Limited has denied reports of an explosion at the Port Harcourt Refining Company (PHRC) in Rivers State. According to Olufemi Soneye, NNPC’s chief corporate communications officer, the incident was a flare event that has since been fully contained. The company assured that there was no threat to staff, surrounding communities, or the environment. The incident comes hours after two explosions hit the pipeline Manifold and Trans-Niger Pipeline in the Omwawriwa axis of the Ogba-Egbema-Ndoni Local and Bodo-Gokana Local Government Area of Rivers State. This development coincides with President Bola Ahmed Tinubu’s recent declaration of a state of emergency in the state, citing unresolved crisis and insecurity in Rivers.

DANGOTE REFINERY BUYS FIRST CARGO OF EQUATORIAL GUINEA’S CEIBA CRUDE AMID CRUDE SHORTAGE

Dangote Refinery has purchased its first cargo of Equatorial Guinea’s medium sweet Ceiba crude, amid reports that the Nigerian National Petroleum Company Limited (NNPC) failed to deliver on its promise to supply adequate crude to the refinery. According to sources, Dangote bought the 950,000 barrels of cargo over April 12-13 from BP in the past week. The price of the cargo is being kept under wraps. This comes after Dangote Refinery bought its first cargo of Algeria’s light sweet Saharan Blend crude from trading firm Glencore last month. Market sources told Argus that Dangote seems to have sourced competitively priced crude from Equatorial Guinea at a time when domestic grades are facing sluggish demand from Nigeria’s core European market. This comes amid ample supply of cheaper Kazakh-origin light sour CPC Blend, United States WTI, and Mediterranean sweet crudes. The NNPC has said it is currently in negotiations with Dangote Refinery about extending their naira-for-crude arrangement. “Any changes to the terms of the programme may pressure Dangote to increase the amount of foreign crude in its slate,” the report said. Refinery sources told Argus in January that Dangote will source at least 50 per cent of its crude needs on the import market and is building eight storage tanks to facilitate this. The founder of the refinery, Aliko Dangote, said last month that the refinery is planning to reach its full capacity in March. However, crude shortage remains a challenge and this could prevent the facility from achieving its ramp-up plans. NNPC spokesperson Olufemi Soneye disclosed some details of the naira-for-crude deal in a recent statement. “Under this arrangement, NNPC has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024. In aggregate, NNPC has made over 84 million barrels of crude oil available to the refinery since its commencement of operations in 2023,” he said. Experts said that to meet its 650,000 bpd production target, the refinery must look elsewhere for feedstock, as the NNPC supplies an average 300,000 barrels of crude per day to Dangote Refinery.

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