We Have Never Accused NNPC Of Failing To Supply – Dangote Refinery Clarifies Stand on Crude Supply
Raymond Osho, Abeokuta
The Dangote Group of Company has clarified its position on the supply of crude oil to its refinery, saying it has never accused the Nigerian National Petroleum Company (NNPC) of failing to supply crude.
This clarification comes amidst ongoing discussions about the supply of crude oil to Nigeria’s refineries and the enforcement of domestic supply obligations.
According to the Company’s Group Chief, Branding and Communications Officer, Anthony Chiejina in a statement he personally signed, Dangote has rather expressed concerns about the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) reluctance to enforce domestic crude supply obligations.
Chiejina said Dangote Refinery requires 15 cargoes of crude oil for September, but NNPC has only allocated six. Despite appeals to NUPRC, the company has been unable to secure the remaining cargoes from NNPC or International Oil Companies (IOCs) producing in Nigeria.
As a result, he said, Dangote Refinery is forced to purchase Nigerian crude from international traders at a premium of $3-$4 per barrel, translating to an additional $3-$4 million per cargo.
The statement reads “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.
The statement added “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”, the statement concluded.
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