The Dangote Petroleum Refinery is lamenting the persistent shortage of crude oil from domestic producers, despite commencing full operations and processing 50 million barrels since its launch.
According to the refinery, while the Nigerian National Petroleum Company (NNPC) Limited has supplied 60% of the processed crude, the remaining 40% has been a challenge to secure.
The refinery’s Group Chief Branding and Communications Officer, Anthony Chiejina, clarified that their previous concerns were not directed at the NNPC’s supply efforts but at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC)’s apparent inaction in enforcing domestic crude supply obligations.
Chiejina highlighted the issue of international oil companies (IOCs) either redirecting the refinery to their international trading arms or claiming that their cargoes were already committed.
To bridge the supply gap, the Dangote Refinery has been compelled to procure the same Nigerian crude from international traders at a premium of $3-$4 per barrel, amounting to an additional $3-$4 million per cargo.
The refinery is now urging the NUPRC to intervene and ensure that local companies fulfill their domestic crude supply obligations as mandated by the Petroleum Industry Act (PIA).
Aliko Dangote, Africa’s richest person and the refinery’s owner, had previously expressed similar concerns in June, stating that some IOCs were facing difficulties in supplying crude to the facility.
