Dangote Industries Limited has dismissed recent media reports suggesting that the Dangote Refinery has backtracked on its position regarding crude oil supplies from the Nigerian National Petroleum Corporation (NNPC). The reports incorrectly allege that the refinery has admitted to receiving 60% of its crude from the NNPC.
In a statement signed by Anthony Chiejina, Group Chief, Branding and Communications Officer at Dangote Industries Limited, the company clarified that it has never accused the NNPC of failing to supply crude oil.
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Instead, its primary concern has been the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) reluctance to enforce the Domestic Crude Supply Obligation, which is vital to ensuring that the refinery receives its full quota of crude oil from both NNPC and International Oil Companies (IOCs).
“For the month of September, our requirement stands at 15 cargoes, of which NNPC has allocated six,” Chiejina explained. “Despite our repeated appeals to the NUPRC, we have been unable to secure the remaining cargoes. When we approached IOCs operating in Nigeria, they either directed us to their international trading arms or informed us that their cargoes were already committed.”
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This situation, according to Chiejina, forces Dangote Refinery to purchase the same Nigerian crude from international traders at an additional premium of $3 to $4 per barrel, resulting in an extra cost of $3 to $4 million per cargo.
Dangote Industries Limited continues to insist that it is unable to secure its full crude requirement from domestic production. The company has urged the NUPRC to fully enforce the Domestic Crude Supply Obligation as mandated by the Petroleum Industry Act (PIA).
