Dangote urges NUPRC to enforce domestic crude supply rules
Dangote Petroleum Refinery Limited has urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce the domestic crude supply obligation as per the Petroleum Industry Act (PIA).
The company is facing challenges in securing its full crude oil requirement from local sources and has denied reports that it accused the Nigerian National Petroleum Company Limited (NNPCL) of inadequate supply.
In a statement signed by Anthony Chiejina, Group Chief Branding and Communications Officer, Dangote Refinery clarified that media reports misinterpreted its position. The company emphasised that its primary concern is NUPRC’s failure to enforce the domestic crude supply obligations, which impacts its operations.
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Dangote Refinery stated that for September, it required 15 cargoes of crude oil, of which NNPC allocated only six. Efforts to obtain the remaining cargoes from International Oil Companies (IOCs) have been unsuccessful, with IOCs either redirecting the company to their international trading arms or claiming their cargoes were committed elsewhere. As a result, the refinery has had to purchase Nigerian crude from international traders at a premium of $3-$4 per barrel, costing an additional $3-$4 million per cargo.
Aliko Dangote, Group Chief Executive Officer, has been in disputes with both government officials and international oil companies over crude oil supplies for the refinery, which processes 650,000 barrels per day. While NUPRC has alleged that the refinery produces substandard products and seeks a monopolistic market, Dangote has accused government officials of attempting to undermine his business and pointed out that much of his crude supply is sourced internationally rather than locally.
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