The Dangote Petroleum Refinery and Petrochemicals has issued a clarification regarding recent media reports alleging that the refinery backtracked on its stance concerning crude oil supply from the Nigerian National Petroleum Corporation (NNPC). In a press statement released on August 9th, 2024, the refinery reiterated its concerns over the failure of International Oil Companies (IOCs) to comply with the domestic crude supply obligations, rather than any inadequacies from the NNPC.
“We have never accused NNPC of not supplying us with crude,” the statement, signed by Anthony Chiejina, Group Chief, Branding and Communications Officer, read. “Our concern has always been that NUPRC is pushing, but IOCs are not following the instructions to enforce the domestic crude supply obligation and ensure that we receive our full crude requirement from NNPC and the IOCs.”
The statement further detailed the refinery’s current supply situation, highlighting that for the month of September, it required 15 cargoes, of which NNPC allocated six. Despite appealing to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for assistance, the refinery has been unable to secure the remaining nine cargoes. “When we approached IOCs producing in Nigeria, they redirected us to their international trading arms or responded that their cargoes were committed,” the statement elaborated.
The refinery also revealed the financial burden it faces due to this situation, often purchasing Nigerian crude from international traders at an additional premium of $3-$4 per barrel, translating 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. It is a law and they just need to comply,” Chiejina emphasized.
This latest statement from Dangote Refinery underscores the ongoing challenges in Nigeria’s oil sector, specifically in ensuring that local refineries receive adequate crude supply as stipulated by the Petroleum Industry Act (PIA).
