The Dangote Refinery has addressed circulating misinformation regarding its crude oil supply arrangements with the Nigerian National Petroleum Company Limited (NNPCL).
In a statement released on Wednesday and obtained by Petroleumprice, the Group Chief, Branding and Communications Officer, Anthony Chiejina, clarified the situation:
“Our attention has been drawn to media reports alleging that the Dangote Refinery has backtracked by acknowledging that NNPC supplied about 60% of the 50 million barrels we lifted.”
He continued, “To clarify, we have never accused NNPC of not supplying us with crude. Our concern has always been NUPRC’s reluctance to enforce the domestic crude supply obligation and ensure that we receive our full crude requirement from NNPC and the IOCs.”
Chiejina further explained the refinery’s current predicament, stating, “For September, our requirement is 15 cargoes, of which NNPC allocated six. Despite appealing to NUPRC, we’ve been unable to secure the remaining cargoes. When we approached IOCs producing in Nigeria, they redirected us to their international trading arms or responded that their cargoes were committed.”
He also highlighted the financial implications of this situation: “Consequently, we often purchase the same Nigerian crude from international traders at an additional $3-$4 premium per barrel, which translates to $3-$4 million per cargo.”
Chiejina concluded with a call to action: “We therefore still insist that we are unable to secure our full crude requirement from domestic production and urge NUPRC to fully enforce the domestic crude supply obligation as mandated by the PIA.”