Dangote Petroleum Refinery Limited has stated that it has not been able to secure its full crude oil requirements from domestic production. The company has called on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce the domestic crude supply obligations mandated by the Petroleum Industry Act (PIA).
In a statement issued by Anthony Chiejina, the Group Chief of Branding and Communications, Dangote addressed the challenges it has encountered in sourcing local crude oil for its operations.
It said, “Our attention has been drawn to media reports alleging that the Dangote Refinery has backtracked by acknowledging that NNPC supplied about 60% of the 50 million barrels we lifted.
The company denied reports that it had accused the Nigerian National Petroleum Company Limited (NNPCL) of not supplying it with crude.
It said, “Our concern has always been NUPRC’s reluctance to enforce the domestic crude supply obligation and ensure 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.”
Aliko Dangote, the Group Chief Executive Officer of Dangote Group, has recently clashed with both government officials and international oil companies over crude oil supplies to the refinery, which has a capacity of 650,000 barrels per day.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has accused the refinery of producing substandard products and seeking a monopolistic market. In response, Dangote has claimed that government officials are actively trying to undermine his business, alleging that a significant portion of his crude supply is imported rather than locally sourced.
The controversy has attracted attention from various groups and individuals, with many advocating for the Nigerian government to support the refinery rather than obstruct its efforts.