Dangote Group makes clarification on crude supply

The Dangote Group has made a clarification concerning media reports about crude supply involving the Nigerian National Petroleum Corporation (NNPC).

In a statement signed by Group Chief Branding and Communication Officer of Dangote Group, Anthony Chiejina, the group denied accusing NNPC of not supplying them with crude,noting that their issue has been with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

“Our attention has been drawn to media reports alleging that the Dangote Refinery has backtracked by acknowledging that NNPC supplied about 60 percent of the 50 million barrels we lifted,” the statement read.

“To clarify, we have never accused NNPC of not supplying us with crude. Our concern has always been NUPRC’s reluctance to enforce the domestic crude supply obligation and ensuring that we receive our full crude requirement from NNPC and the 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. When we approached IOCs producing in Nigeria, they redirected us to their international trading arms or responded that their cargoes were committed.

“Consequently, we often purchase the same Nigerian crude from international traders at an additional $3-$4 premium per barrel, which translates to $3-$4 million per cargo.

“We therefore still insist that we are unable to secure our full crude requirement from domestic production and urge NUPRC to fully enforce the domestic crude supply obligation as mandated by the PIA.”