Dangote Refinery Clarifies Crude Supply Issues, Urges NUPRC to Enforce Domestic Supply Obligations
Dangote Refinery Clarifies Crude Supply Issues, Urges NUPRC to Enforce Domestic Supply Obligations
By Matthew Eloyi
The Dangote Refinery has addressed recent media reports suggesting that the company had retracted earlier statements by acknowledging that the Nigerian National Petroleum Corporation (NNPC) supplied 60% of the 50 million barrels it lifted.
The company clarified that it never accused NNPC of failing to supply crude oil but expressed concerns over the Nigeria Upstream Petroleum Regulatory Commission’s (NUPRC) reluctance to enforce domestic crude supply obligations.
In a statement signed by the Group Chief, Branding and Communications Officer of Dangote Refinery, the company emphasized that their main issue lies with the NUPRC’s failure to ensure that Dangote Refinery receives its full crude requirement from NNPC and International Oil Companies (IOCs).
“For September, our requirement is 15 cargoes, of which NNPC allocated six. Despite appealing to NUPRC, we’ve been unable to secure the remaining cargoes,” the statement read.
The refinery also noted that approaches to IOCs operating in Nigeria were met with challenges, as these companies either redirected them to their international trading arms or informed them that their cargoes were already committed elsewhere.
The situation has forced Dangote Refinery to purchase Nigerian crude from international traders at an additional premium of $3-$4 per barrel, which translates to $3-$4 million per cargo.
The company insists that it remains unable to secure its full crude requirement from domestic production and calls on the NUPRC to fully enforce the domestic crude supply obligation as mandated by the Petroleum Industry Act (PIA).
