“Additional $4”: Dangote Speaks on Cost of Buying Nigerian Crude Oil From International Companies
- Dangote Industries Limited clarified that it never asserted that the NNPCL is denying crude oil to its refinery
- The company said it is concerned about NUPRC's reluctance to uphold the pledge on local crude supplies
- He says the refinery needed fifteen shipments in September, and six of those were given to the NNPCL
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Dangote Industries Limited stated that it never claimed that the Nigeria National Petroleum Company Limited (NNPCL) was depriving its refinery of crude oil.
Source: UGC
Contrary to reports that the Dangote Refinery backed down from its accusations that the NNPCL was not delivering it with crude oil, the company stated in a statement on Thursday that its worry has always been NUPRC's unwillingness to enforce the domestic crude supply commitment.
The statement by the Group Chief Branding & Communications Officer Anthony Chiejina according to Channels TV read,
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“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.”
“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 ensuring that we receive our full crude requirement from NNPC and the IOCs.”
Only a few shipments delivered
Six of the fifteen shipments that the refinery needed in September, he claims, were sent to the NNPCL.
“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,” it said.
“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. 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.”
Dangote Refinery confirms date for release of petrol
Legit.ng reported that Dangote Industries Limited has reiterated that production of Premium Motor Spirit (PMS), commonly known as petrol, will commence at the Dangote refinery in July 2024.
Devakumar Edwin, vice president of Oil and Gas at Dangote Industries Limited, stated this during a visit by the S&P Global team to the Dangote Refinery in Ibeju-Lekki, Lagos.
Earlier, Legit.ng reported that Dangote refinery set July 10–15, 2024, as the dates for supplying petrol products to the Nigerian market.
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Source: Legit.ng
