Dangote Refinery has clarified its stance on the crude oil supply issue, debunking reports that it had backtracked on its earlier claims.
The refinery acknowledged that NNPC had supplied about 60% of the 50 million barrels it had lifted, but emphasized that its concern was not with NNPC’s supply, but rather with the National Upstream Petroleum Regulatory Commission’s (NUPRC) reluctance to enforce the domestic crude supply obligation.
The refinery stated that it requires 15 cargoes for September, but NNPC had only allocated six, leaving a significant shortfall.
Despite appealing to NUPRC, the refinery was unable to secure the remaining cargoes from NNPC or the International Oil Companies (IOCs) operating in Nigeria.
The IOCs either redirected the refinery to their international trading arms or stated that their cargoes were already committed.
As a result, the refinery is forced to purchase Nigerian crude from international traders at an additional premium of $3-$4 per barrel, translating to $3-$4 million per cargo.
This situation highlights the challenges faced by the refinery in securing its full crude requirement from domestic production.
Dangote Refinery is urging NUPRC to fully enforce the domestic crude supply obligation as mandated by the Petroleum Industry Act (PIA).
The refinery believes that this enforcement is crucial to ensure that it receives its full crude requirement from NNPC and the IOCs, thereby minimizing the need to purchase crude at a premium from international traders.
The refinery’s concerns underscore the need for effective regulation and enforcement of the domestic crude supply obligation to support the growth and development of Nigeria’s refining capacity.
By ensuring that refineries like Dangote receive their full crude requirement from domestic production, NUPRC can help reduce the country’s reliance on imported petroleum products and promote economic growth.
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