Oil Sector in Frenzy after New Report Says Dangote Refinery Petrol Unit May be Out for 3 Months

•EU, UK petrol exports to Nigeria fall from 200,000 bpd to 120,000 bpd 

•Oil price eases further, slumps to two-week low

Emmanuel Addeh in Abuja

The petrol unit at Nigeria’s 650,000 barrel-per-day Dangote refinery may be shut for between two to three months for repairs, industry monitor IIR Energy told clients on Thursday, which could lead to a tighter  market.

The unit has been shut since around August 29 after catalyst leaks, a Reuters report said yesterday. The refinery plans to attempt to restart the 204,000 bpd Residue Fluidized Catalytic Cracking Unit (RFCCU) on September 20, but major repairs and equipment replacement could keep the unit shut for months, IIR Energy said.

Reuters first reported on Wednesday that Dangote’s RFCCU was expected to be shut for at least two weeks. Dangote did not immediately respond to a request for comment to the news, the report said.

One petroleum products trader said the market for the motor fuel was already strong. “This just adds fuel to the fire,” the trader told Reuters.

The U.S. petrol futures crack spread has risen nearly 13 per cent so far this week, to its highest since August 19, while Northwest European gasoline profit margins have risen around 23 per cent to $19.31 as of Wednesday according to LSEG data, trading at their highest since late June.

Supply constraints in the market due to current and upcoming outages are enough to offset the seasonal decline in demand, noted Philip Jones-Lux, senior analyst at Sparta Commodities.

The Dangote refinery, which began processing crude in January 2024, has slashed the Europe to West petrol export trade significantly. EU and UK petrol exports to Nigeria fell from an average of about 200,000 bpd in 2024 to about 120,000 bpd in the first half of this year, according to Kpler data.

It has also shipped two petrol cargoes to the U.S. East Coast, expected to arrive in the New York area later this month, a major milestone as industry observers were closely tracking if and when the plant would produce fuel meeting U.S. standards

Meanwhile, oil prices eased about 1 per cent to a two-week low on Thursday on a surprise build in U.S. crude inventories last week and expectations that OPEC+ producers will increase output targets at a meeting this weekend.

Brent crude futures fell 65 cents, or 1.0 per cent, to settle at $66.95 a barrel, while U.S. West Texas Intermediate crude fell 49 cents, or 0.8 per cent, to settle at $63.48.

The U.S Energy Information Administration (EIA) said energy firms added 2.4 million barrels of crude into storage during the week ended August 29 as refineries headed into maintenance season.

Eight members of the Organisation of the Petroleum Exporting Countries (OPEC) and allies like Russia in OPEC+ will consider further increases to production in October at a meeting on Sunday, two sources familiar with the discussions told Reuters.

A potential OPEC+ production hike would send a strong signal that regaining market share takes priority over price support, said Tamas Varga, a senior analyst at PVM Oil Associates brokerage and consulting firm.

OPEC+ has already agreed to raise output targets by about 2.2 million barrels per day from April to September, in addition to a 300,000-bpd quota increase for the United Arab Emirates.

The post Oil Sector in Frenzy after New Report Says Dangote Refinery Petrol Unit May be Out for 3 Months appeared first on THISDAYLIVE.

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    Deputy Speaker Kalu, Finance Minister Resolve Indigenous Contractors Crisis With FG

    Deputy Speaker Kalu, Finance Minister Resolve Indigenous Contractors Crisis With FG

    In a significant development, the Deputy Speaker of the House of Representatives, Rt. Hon. Benjamin Okezie Kalu, Thursday, successfully brokered a resolution through his intervention, bringing an end to the standoff between the Federal Government and indigenous contractors of Nigeria.

    This came after the contractors, owed for months, staged a protest in Abuja.

    Following his appointment as Chairman of the House Special Committee on Budget Implementation by the Speaker, Rt. Hon. Abbas Tajudeen, Kalu convened an expanded meeting with the contractors numbering over 80 across the country with their leadership for an open dialogue on the issue.

    In attendance were also the Minister of Finance, Mr. Wale Edun, the Accountant-General of the Federation, Mr. Shamseldeen Ogunjimi and other top government officials.

    After a marathon meeting lasting over four hours, Kalu announced that all parties had resolved the issues in the interest of the economy.

    Kalu’s intervention was hailed by the parties who said that it averted further disruptions, demonstrating the effectiveness of dialogue in resolving disputes.

    To this end, payments to contractors are expected to commence from Monday.

    Speaking at the end of the meeting, the Deputy Speaker said that a mutually beneficial agreement was reached, expressing his gratitude to the Speaker of the House and his colleagues for entrusting him with the responsibility.

    He also announced subsequent meetings later this month to evaluate progress.

    He said: “First of all, I want to thank the Speaker of the House of Representatives, Rt. Hon. Tajudeen Abass, PhD, GCON, the leadership of the House for finding me worthy to be the Chairman of Budget Implementation Committee. We met yesterday, cut down our holidays to be able to reconvene and look into this all important matters.

    “We met on Wednesday with Finance Minister, Minister of Budget and Planning, Accountant-General of the Federation, Representatives that cut across all the caucuses of the House, including representation from the House Appropriation Committee and Finance.

    “We saw the protest and asked them to come, lets have a conversation. I want to thank President Bola Ahmed Tinubu, GCFR for appointing these gentlemen to occupy the positions they occupy.

    “They have shown humility in service. They’ve shown diligence in the way this matter has been handled and the parliament we are happy that all we discussed yesterday they started implementing today, the ability to engage with the people.

    “We had over 4 hours engagement and they left here smiling. We got the strategy in place, and we’re going to come back on the 21st of this month to review what we’ve done so far, how we’ve ticked the boxes, what needs to be done and the way forward.”

    Also speaking, the minister of finance, Edun commended the Deputy Speaker for his intervention, assuring that the payment will commence next week.

    “Under the leadership of the Rt. Hon. Benjamin Kalu, we did hold a marathon meeting today where all the issues were discussed and a timeline was put in place and a way forward was mapped out and all parties at the end of it left knowing that contractors would be paid for jobs done and we have an orderly and systematic way of dealing with the backlogs which had approved overtime.

    “Once again, we commend the leadership of the House of Representatives and the contractors for their willingness to sit down and dialogue. The Accountant-General of the Federation made some commitments which helped us to chart the way forward.

    “We had a peaceful solution. A timeline was put in place and everyone accepted that there are steps that need to be taken, approvals, finalization and orderly procedure for payments. After Friday’s holiday, the Central Bank will open again on Monday and payments will commence immediately”, he said.

    The Accountant-General of the Federation, Ogunjimi corroborated the position of the minister of finance.

    “This process is ongoing. We’ve been paying contractors and we will continue to pay. From Monday, payments will start dropping”, he said.

    Earlier in the meeting, the leadership and membership of the association of indigenous contractors of Nigeria expressed satisfaction with the resolutions reached.

    Commending the Deputy Speaker for his intervention, they also pledged to discontinue with the protest.

    The post Deputy Speaker Kalu, Finance Minister Resolve Indigenous Contractors Crisis With FG appeared first on THISDAYLIVE.

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    In a significant development, the Deputy Speaker of the House of Representatives, Rt. Hon. Benjamin Okezie Kalu, Thursday, successfully brokered a resolution through his intervention, bringing an end to the
    The post Deputy Speaker Kalu, Finance Minister Resolve Indigenous Contractors Crisis With FG appeared first on THISDAYLIVE.

    Jonathan: Nigerian Politics is Full of Traitors, Liars

    Jonathan: Nigerian Politics is Full of Traitors, Liars

    •’They will tell you something, the next hour they are saying another’

    •Says he has witnessed a lot of betrayals

    Adibe Emenyonu in Benin City

    Former President of Nigeria, Dr. Goodluck Jonathan, yesterday said that Nigeria’s political atmosphere is full of betrayals and lies.

    Jonathan stated this in Benin City during the 70th birthday ceremony of his former Chief of Staff and former Deputy Governor of Edo State, Chief Mike Ogiadomhe.

    The ceremony attracted many dignitaries, including former governors Lucky Igbinedion, Professor Osarhiemen Osunbor and Adams Oshiomhole and Ibrahim Dakwambo of Gombe State.

    Others included former deputy governors of the state, Rev. Peter Obadan, Pius Odubu, Marvelous Omobayo, Chief Judge of Edo State Daniel Okungbowa, Speaker of the Edo State House of Assembly, Blessing Agbebaku who led other members of the assembly, traditional rulers among others.

    Jonathan said Ogiadomhe was an ally that can be trusted at all time. When I became president, then post presidency, one of the few friends that could give up their necks for me is Mike. You know politics, in the Nigerian standard, is about betrayals.

    “You find it difficult to see somebody who will say the same thing in the morning and in the evening. I’ve witnessed a lot of betrayals, especially my 2015 election, and Mike is somebody who would take a bullet on my behalf.

    “He is somebody that you can take his word to the bank,  most other politicians, you cannot take their words to the bank. They will tell you something, the next hour they are saying another,” the former Nigerian President stated.

    On his part, the deputy governor of Edo State, Dennis Idahosa, who represented Governor Monday Okoebholo said the foundation Ogiadomhe laid as deputy is what is still being followed, while Lucky Igbinedion said he had no reservation handing over the affairs of the state to Ogiadomhe as his deputy governor when he needed to travel abroad.

    Also speaking, former Governor of the state,  Adams Oshiomhole said whenever he discussed politics with the celebrant, he always told him that wherever Jonathan is, that is where he would be, commending his wife, Lousia for being a dependable wife.

    The post Jonathan: Nigerian Politics is Full of Traitors, Liars appeared first on THISDAYLIVE.

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    •’They will tell you something, the next hour they are saying another’ •Says he has witnessed a lot of betrayals Adibe Emenyonu in Benin City Former President of Nigeria, Dr.
    The post Jonathan: Nigerian Politics is Full of Traitors, Liars appeared first on THISDAYLIVE.

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