Dangote Refinery clarifies stand, demands enforcement of domestic crude supply obligations


Dangote Refinery has clarified its position on crude oil supply, responding to media claims about its reliance on the Nigerian National Petroleum Corporation (NNPC). 

The refinery stated that it has never accused NNPC of failing to supply crude. Instead, the concern lies with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) not enforcing domestic supply obligations.

In a press statement signed by Mr. Anthony Chiejina, Group Chief, Branding and Communications Officer of Dangote Group, the refinery explained that for September, the it requires 15 cargoes but has only received six from NNPC. 

This shortfall, it also added, forces Dangote to purchase Nigerian crude from international traders at a premium, costing an additional $3-$4 million per cargo. 

The company therefore urges NUPRC to ensure compliance with the Petroleum Industry Act (PIA) to meet its crude needs effectively.

Below is full text of the press statement:

“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. 

“To clarify, we have never accused NNPC of not supplying us with crude. 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.”

Signed,

Anthony Chiejina

Group Chief, Branding and Communications Officer

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