The Management of Dangote Industries Limited (DIL) has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its efforts to promote transparency in the oil industry.
The company’s Vice President, Oil & Gas, DVG Edwin, praised NUPRC’s intervention in facilitating crude supply requests from International Oil Companies (IOCs) and the publication of the Domestic Crude Supply Obligation (DCSO) guidelines.
Despite the challenges, Dangote Refinery has faced in obtaining locally produced crude from IOCs, who instead offer cargoes through their trading arms at inflated prices, Edwin acknowledged NUPRC’s support in resolving these issues.
He emphasized the need for a willing buyer-willing seller relationship and transparent pricing, citing the domestic gas supply obligation as a model.
Edwin highlighted instances where the company was charged premiums above the official price set by NUPRC and urged the regulatory commission to address the pricing issue.
He also noted that the company has only purchased crude directly from one local producer, Sapetro, and Nigerian National Petroleum Corporation Limited (NNPCL), while other producers redirect them to international trading arms.
The company’s efforts to secure crude supply have been hindered by IOCs’ reluctance to sell directly, forcing Dangote Refinery to rely on middlemen.
Edwin appealed to NUPRC to ensure that the DCSO guidelines are diligently implemented to promote transparency and fairness in the oil industry.
In response to NUPRC’s CEO, Engr. Gbenga Komolafe’s statement that IOCs are not refusing to sell crude to domestic refiners, Edwin clarified that while NUPRC has been supportive, the company has faced challenges in obtaining crude supply from IOCs.
He urged the regulatory commission to take a second look at the issue of pricing, ensuring that transactions are based on a willing seller-willing buyer relationship and transparent pricing.
Overall, Dangote Industries Limited commended NUPRC’s efforts to promote transparency in the oil industry and urged the regulatory commission to address the challenges faced by the company in obtaining crude supply from IOCs.
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