Dangote Refinery (DR) said its attention has been drawn to media reports alleging that the refinery has backtracked by acknowledging that Nigerian National Petroleum Company Limited (NNPC) supplied about 60% of the 50 million barrels lifted.
“To clarify, we have never accused NNPC of not supplying us with crude. Our concern has always been Nigeria Upstream Regulatory Commission (NUPRC’s) reluctance to enforce the domestic crude supply obligation and ensure that we receive our full crude requirement from NNPC and the International Oil Companies (IOCs).”
For September, DR requirement is 15 cargoes, of which NNPC allocated six. Despite appealing to NUPRC, DR has not been unable to secure the remaining cargoes. When it approached IOCs producing in Nigeria, they redirected it to their international trading arms or responded that their cargoes were committed.
Consequently, DR often purchased the same Nigerian crude from international traders at an additional $3-$4 premium per barrel which translates to $3-$4 million per cargo
DR still insists that it is unable to secure its full crude requirement from domestic production and urge NUPRC to fully enforce the domestic crude supply obligation as mandated by the Petroleum Industry Act (PIA).
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