IOCs supplying crude to Dangote Refinery, FG counters Dangote’s claims

The Federal Government of Nigeria through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has countered claims made by Alhaji Aliko Dangote that International Oil Companies (IOCs) are refusing to supply his 650, 000 BPD refinery with crude.

Dangote, Africa’s richest person, had accused some international oil companies (IOCs) of struggling to supply crude to Dangote Petroleum Refinery while speaking on CNN’s ‘Connecting Africa’ programme, which aired on June 3, 2024.

Asked if domestic oil companies have been supplying crude to the refinery, he said “there are challenges”.

A few weeks later, Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, also accused the IOCs of planning to frustrate the survival of the new Dangote Petroleum Refinery.

Edwin had said the IOCs were deliberately and willfully frustrating the refinery’s efforts to buy local crude by hiking the cost above the market price, thereby forcing the refinery to import crude from countries as far as the United States, with its attendant high costs.

READ ALSO: Why we didn’t raise investment at Dangote Refinery – NNPCL

However, the NUPRC punctured the narrative on Monday as Engineer Gbenga Komolafe, the Commission’s Chief Executive Officer while appearing on an interview with Arise TV disclosed that the Dangote refinery is receiving crude oil sales from International Oil Companies (IOCs)

He said that according to the commission’s knowledge, the IOCs are making crude oil available for interested buyers, and the product is abundant.

“Yes, in recognition of the provisions of the Petroleum Industry Act (PIA) that make the supply of crude to domestic refineries obligatory, the commission has enforced that. The issue is not that the IOCs or other producers are refusing to make crude available.

“To the best of the knowledge of the commission, there is nothing like IOCs being too big or not complying with their statutory obligations to make crude oil available.

“Making the crude available is done at a price and the provisions of the law is that it should be done on a willing-buyer, willing-seller basis.

“No producer is refusing to make crude available to the Dangote refinery,” Komolafe said.

By: Babajide Okeowo

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