The management of Dangote Petroleum Refinery has reiterated that it is not receiving sufficient crude oil from the Nigerian National Petroleum Corporation Limited (NNPC) to fully optimize its refinery operations.
In a statement signed by the Group Chief, Branding and Communications Officer, Anthony Chiejina, the refinery management stated, “We continue to emphasize that we are unable to secure the full amount of crude required from domestic production. We urge the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce the domestic crude supply obligation as mandated by the Petroleum Industry Act (PIA).”
Chiejina clarified that the company has never accused the NNPC of failing to supply crude, but rather expressed concern over NUPRC’s reluctance to enforce the obligation, ensuring that the refinery receives the necessary crude from NNPC and international oil companies (IOCs).
“For September, our requirement is 15 cargoes, of which NNPC allocated six. Despite our appeals to NUPRC, we have been unable to secure the remaining cargoes. When we approached IOCs operating in Nigeria, they redirected us to their international trading arms or informed us that their cargoes were already committed elsewhere,” Chiejina explained.
He added, “As a result, we often have to purchase the same Nigerian crude from international traders at an additional premium of $3-$4 per barrel, which translates to an extra $3-$4 million per cargo.”