The Nigerian National Petroleum Company Limited has opened high-level discussions with international oil companies and indigenous producers to ramp up crude oil production as the rapidly evolving supply dynamics driven by the Dangote Petroleum Refinery continue to reshape the domestic fuel market, it has been learnt.

This comes as Iran’s military command, yesterday, warned that global oil prices could surge to $200 per barrel after three ships were attacked in the Strait of Hormuz, further escalating tensions in one of the world’s most critical oil transit routes.

The talks, according to highly placed sources within NNPC Ltd who are familiar with the matter, are aimed at boosting crude availability for local refining and easing mounting pressure on petrol prices as competition for feedstock intensifies.

“NNPC Limited recognises that the Dangote Refinery is a strategic national asset, and ensuring its optimal operation is important for Nigeria’s energy security.

Within the framework of existing agreements, NNPC continues to facilitate crude supply to the refinery, even in the face of temporary supply constraints.

To address the situation,we are working with our joint venture partners and production operators to improve domestic crude production, which will increase volumes available for local refining.

Our goal is to support domestic refining capacity and ensure Nigeria derives maximum value from its crude resources,” the sources said.

They added that NNPC Limited understands the impact global energy price volatility can have on Nigerians, particularly during periods of geopolitical tension such as the current Middle East crisis.

To cushion the effects, they said the state oil company is taking several steps to ensure energy security and product availability across the country.

“We are closely monitoring global developments and working with industry regulators such as NMDPRA and NUPRC to ensure adequate crude supply and petroleum product availability.

“We are also working closely with domestic refiners, including the Dangote Refinery, to ensure consistent crude supply for local refining.

“In addition, NNPC continues to advance its gas development initiatives, which are critical to diversifying Nigeria’s energy mix and reducing the country’s exposure to global oil price shocks.

“Our focus remains clear: to safeguard national energy security and ensure Nigerians continue to have access to petroleum products despite global market disruptions,” they said.

Meanwhile, the International Energy Agency (IEA) has announced a massive 400 million-barrel oil release to ease the global supply crunch caused by the escalating Middle East conflict.

IEA Executive Director Fatih Birol made the announcement on Wednesday, saying the decision came after a unanimous agreement among member countries. He described it as the largest emergency oil release in the agency’s 50-year history.

“IEA countries will be making 400 million barrels of oil available to the market to offset the supply lost due to the effective closure of the Strait of Hormuz. This action aims to alleviate the immediate impact of disruption in markets,” he stated.

Birol, however, stressed that the ultimate solution to stabilising oil flows lies in reopening the Strait of Hormuz, the vital chokepoint along Iran’s coast that handles about one-fifth of the world’s oil shipments.

He added that the IEA would continue monitoring the situation and make further recommendations as needed to keep markets stable.

The announcement comes amid warnings from Iran’s military that crude prices could surge to $200 per barrel after attacks on three vessels in the strait. The escalation has rattled markets and prompted urgent interventions by international agencies.

The move also follows recent discussions by Group of Seven (G7) finance ministers on coordinated releases from emergency oil reserves, highlighting the severity of the supply disruption caused by the U.S.-Israeli conflict with Iran. (The Sun)

Update news