Business

Press Statement: Clarification on Crude Supply to Dangote Refinery

Published by admin on August 9th, 2024.

Press Statement: Clarification on Crude Supply to Dangote Refinery

Our attention has been drawn to recent media reports suggesting that the Dangote Refinery has conceded that approximately 60% of the 50 million barrels we lifted were supplied by the Nigerian National Petroleum Corporation (NNPC).

We would like to clarify that at no point did we accuse the NNPC of failing to supply us with crude. Our primary concern has always been the lack of adherence by International Oil Companies (IOCs) to the directives issued by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). These directives are meant to ensure that our domestic crude supply obligations are met, particularly in securing our full crude requirement from both NNPC and IOCs.

For the month of September, our refinery required 15 cargoes, out of which NNPC allocated six. Despite our appeals and NUPRC’s intervention, we have been unable to obtain the remaining cargoes. When we approached the IOCs operating in Nigeria, we were either redirected to their international trading arms or informed that their cargoes had already been committed elsewhere.

As a result, we often find ourselves purchasing the same Nigerian crude from international traders at a premium of $3-$4 per barrel, which adds an additional cost of $3-$4 million per cargo. Therefore, we maintain that we are still unable to secure our full crude requirement from domestic production and strongly urge NUPRC to enforce the domestic crude supply obligations as mandated by the Petroleum Industry Act (PIA). This law exists, and it is imperative that all parties comply with it.

Anthony Chiejina, Group Chief, Branding and Communications Officer