For the Dangote refinery, buying Nigerian crude oil from international traders costs an extra $3 million to $4 million per load, the company said
For the Dangote refinery, buying Nigerian crude oil from international traders costs: In a statement on Friday, the company’s Group Chief and Head of Branding and Communications, Anthony Chiejina, said the refinery’s crude oil supply issue was with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian International Oil Company (IOC). Nigerian National Petroleum Corporation (NNPC) Limited. For the Dangote refinery, buying Nigerian crude oil from international traders costs
Dangote Oil Refinery has revealed its crude oil supply situation, revealing that it is buying Nigerian crude oil from international traders at a premium of $3-4 per barrel, which translates to an additional $3-4 million per load.
In a statement on Friday, the company’s Group Chief and Head of Branding and Communications, Anthony Chiejina, said the refinery’s crude oil supply issue was with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian International Oil Company (IOC). Nigerian National Petroleum Corporation (NNPC) Limited.
Chiejina explained that Dangote Refinery never accused NNPCL of not supplying crude oil but admitted that the company had actually supplied about 60 percent of the 50 million barrels it produced.
The clarification is aimed at rectifying the company’s crude oil supply situation. “To be clear, we have never accused NNPC of not supplying us with crude oil. Our concern is that, although NUPRC is pushing for it, IOCs are not following through on their instructions to enforce their domestic crude supply commitments and ensure they receive all their crude oil requirements from NNPC and IOCs,” the company said.
As a specific example, Dangote Oil Refinery said it needs 15 cargoes in September but NNPC has only allocated six of them.
“We appealed to NUPRC and despite their intervention, we have not been able to secure the remaining cargoes,” he revealed. “When we contacted IOCs who produce in Nigeria, they either referred us to their international trade division or replied that their cargoes are on consignment.”
“As a result, we often buy the same Nigerian crude oil from international traders at a premium of $3-4 per barrel, which equates to $3-4 million per load,” it said. The company maintained that domestic production cannot meet all of its crude oil demand and called on NUPRC to fully enforce its domestic crude oil supply obligations under the Petroleum Industry Act (PIA).
“So we continue to maintain that domestic production cannot meet all of our crude oil demand and we call on NUPRC to fully enforce its domestic crude oil supply obligations under the PIA.”
“It’s the law and they just have to follow it,” Chiejina said. Follow my Facebook Profile Here!
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