Dangote Refinery has refuted recent media reports alleging that it criticized the Nigerian National Petroleum Corporation (NNPC) for failing to meet its crude supply obligations. In a statement issued today, the refinery’s Group Chief, Branding and Communications Officer, Anthony Chiejina, clarified the refinery’s position, emphasizing that it has consistently recognized NNPC’s efforts in crude supply.
“We have never accused NNPC of not supplying us with crude,” Chiejina stated, adding that NNPC has provided approximately 60% of the 50 million barrels lifted by the refinery to date.
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The refinery’s primary concern, according to Chiejina, revolves around the enforcement of the domestic crude supply obligations as stipulated in the Petroleum Industry Act (PIA). He highlighted the ongoing challenges in securing the full crude requirement from domestic production, despite interventions by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
“For September, our requirement is 15 cargoes, of which NNPC allocated six,” Chiejina disclosed. He further explained that efforts to secure the remaining cargoes from international oil companies (IOCs) operating in Nigeria have been unsuccessful, as these companies often redirect the refinery to their international trading arms or claim that their cargoes are already committed elsewhere.
As a result, Dangote Refinery has been forced to purchase Nigerian crude from international traders at a premium, incurring an additional cost of $3-$4 per barrel, which translates to $3-$4 million per cargo.
“We still insist that we are unable to secure our full crude requirement from domestic production,” Chiejina reiterated, urging the NUPRC to enforce the domestic crude supply obligations mandated by law. “It is a law, and they just need to comply,” he stressed.
This clarification from Dangote Refinery comes amidst growing scrutiny of Nigeria’s oil sector and the ongoing Senate Ad-hoc Committee investigation into alleged economic sabotage within the petroleum industry. The challenges facing domestic refining capacity have led to tensions among key industry players, with many pointing fingers at each other.
As Nigeria continues its efforts to maximize the benefits of its petroleum resources, the enforcement of domestic supply obligations remains a critical issue.