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HomeNewsDangote Refinery Clarifies Crude Supply Dispute, Calls for Enforcement of Domestic Obligations

Dangote Refinery Clarifies Crude Supply Dispute, Calls for Enforcement of Domestic Obligations

The Dangote Refinery has denied allegations that it backtracked on claims about crude supply from the Nigerian National Petroleum Company (NNPC), saying its concern remains the inability to secure full crude requirements from domestic production.

“We have never accused NNPC of not supplying us with crude,” said Anthony Chiejina, Group Chief, Branding and Communications Officer. “Our concern has always been that NUPRC is pushing but IOCs are not following the instructions to enforce the domestic crude supply obligation.”

The refinery requires 15 cargoes for September, but NNPC only allocated six, leaving a significant shortfall. Despite appeals to NUPRC, the refinery has been unable to secure the remaining cargoes from international oil companies (IOCs) producing in Nigeria.

“When we approached IOCs, they redirected us to their international trading arms or responded that their cargoes were committed,” Chiejina explained. “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.”

Dangote Refinery insists that it is unable to secure its full crude requirement from domestic production and urges NUPRC to fully enforce the domestic crude supply obligation as mandated by the Petroleum Industry Act (PIA).

“It is a law, and they just need to comply,” Chiejina emphasized.

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