Mr. Adetunji Oyebanji
The Major Oil Marketers Association of Nigeria (MOMAN) had an inspection visit recently to Dangote refinery. MOMAN consists of major oil marketers and traders in Nigeria operating in the downstream sector.
Chairman of MOMAN, Mr. Adetunji Oyebanji, spoke with Felix Douglas, Editor of Energy Focus Report at the side line of Nigeria Oil and Gas Conference and Exhibition that the visit was to ascertain the level of work ongoing at the refinery which will be of immense benefit to members after completion.
Oyebanji acknowledged the positive role that the refinery will play to MOMAN members by saving the association the stress of foreign exchange and delay of getting imported refined petroleum products.
The MOMAN Chairman opined that Dangote refinery is a game changer for oil markerters.
Recently the MOMAN team went on an inspection visit to the Dangote Refinery, what are the objectives of the visit?
The aim of the visit was to go and see for ourselves the progress on the construction of the refinery. It was pleasing to know that a significant amount of work has been done. From the presentations made to us it is clear that by this time next year (2022) hopefully, the refinery would have been completed or commissioned for testing. It will be ready for production which is a welcome development.
Also, we use the opportunity to confirm to the refinery owners that MOMAN is interested in off taking products from it and possible evacuation by trucks, vessels and how easy to take products away from the refinery.
The MOMAN team had discussions on the commercial terms and other modalities. After deliberations, we agreed that when the refinery is ready for operation, supplying of products and contracts will be signed and take off in earnest.
Does MOMAN as an association that is in charge of the downstream in Nigeria see the refinery as a good news for its members?
Yes, Dangote refinery is a game changer not only for the industry but for Nigeria as a whole. First and foremost, it will be saving about 30% of the huge chunk of foreign exchange on importation of refined petroleum products which has been used for that purpose. This is a major game changer.
Secondly, between ordering the cargo of the product and arriving in Nigeria, the cycle may be 6 to 8 weeks that will no longer be the case because the time for you to buy the products will definitely be shorter. This will bring efficiency if you are able to get the product for 2 or 3 days, the kind of storage you need to invest is different.
The reason why we all have huge storage sometimes is because it takes 6 weeks to get another cargo. So, you need a enough storage for sales until your next cargo comes. In effect, that means the whole industry will be more efficient in terms of product lifting.
The refinery has capacity to take at least two thousands trucks a day. In addition, you can also evacaute products by vessel. Again, there are options such that each member buying from the refinery can consider what is most viable and efficient for its own operations.
There are so many aspects where it is going to be a game changer for all players in the downstream.