Dangote Refinery has issued a statement to clarify its position on the crude supply dispute with the Nigerian National Petroleum Company (NNPC).
The company denied allegations of backtracking on its claim that NNPC supplied only 60% of the required 50 million barrels of crude.
Instead, Dangote Refinery emphasized its concern about the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) failure to enforce domestic crude supply obligations.
According to Anthony Chiejina, Group Chief, Branding and Communications Officer, Dangote Refinery requires 15 cargoes of crude for September, but NNPC only allocated six.
Despite appeals to NUPRC, the company struggled to secure the remaining cargoes from NNPC or International Oil Companies (IOCs).
Consequently, Dangote Refinery is forced to purchase Nigerian crude from international traders at an additional $3-$4 premium per barrel, translating to $3-$4 million per cargo.
The company urged NUPRC to fully enforce the domestic crude supply obligation as mandated by the Petroleum Industry Act (PIA) to ensure timely and adequate supply of crude for domestic refining.
Dangote Refinery reiterates its commitment to supporting Nigeria’s energy security and economic growth, but requires a reliable and sustainable crude supply to operate effectively.