The Dangote Refinery has reiterated its struggle to secure its full crude oil supply from domestic production, urging the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) to enforce the domestic supply obligation as required by the Petroleum Industry Act (PIA).
The Dangote Group alleged that it has been forced to buy Nigerian crude oil from international traders at an additional premium of $3 to $4 per barrel.
This was disclosed in a press statement signed by its Chief Branding and Communications Officer, Anthony Chiejina, in response to media reports suggesting that the NNPC had supplied its quota of crude oil to the Dangote refinery.
The company noted in the statement that International Oil Companies (IOCs) are not adhering to the oil supply guidelines issued by the NUPRC.
It clarified that it had to purchase the same Nigerian crude oil from the international trading arms of IOCs at a premium of $3 to $4 per barrel.
The statement reads, “We have taken note of media reports claiming that the Dangote Refinery has acknowledged receiving about 60% of the 50 million barrels from NNPC.”
“To clarify, we have never accused NNPC of not supplying us with crude. Our concern has always been that while NUPRC is making efforts, IOCs are not complying with the instructions to enforce the domestic crude supply obligation, ensuring we receive our full crude requirement from NNPC and the IOCs.”
“As a result, we often have to purchase the same Nigerian crude from international traders at an additional premium of $3 to $4 per barrel, which equates to $3 to $4 million per cargo.”
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