PIA: NUPRC should enforce domestic crude supply obligations, Dangote insists

Dangote Petroleum Refinery Limited has stated that it has been unable to meet its entire crude requirement through domestic production, and has urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to fully enforce the domestic crude supply obligation mandated by the Petroleum Industry Act (PIA).

Dangote emphasized in a statement signed by the Group Chief, Branding and Communications Officer, Anthony Chiejina, in which the business highlighted concerns related to the difficulties it has encountered in obtaining crude oil locally for its activities.

It stated, “Our attention has been drawn to media reports alleging that the Dangote Refinery has backtracked by admitting that NNPC supplied approximately 60% of the 50 million barrels we lifted.”

The corporation rejected claims that it had accused Nigerian National Petroleum corporation Limited (NNPCL) of failing to furnish them with petroleum.

It stated, “Our problem has always been NUPRC’s reluctance to enforce the domestic crude supply commitment and ensuring that we obtain our whole oil requirement from NNPC and the IOCs.

For September, we require 15 cargoes, of which NNPC has allocated six. Despite our plea to the NUPRC, we have been unable to get the remaining shipments. When we approached IOCs manufacturing in Nigeria, they either pointed us to their international trading arms or said their cargoes were already committed.

“As a result, we frequently buy the same Nigerian oil from overseas dealers at an additional $3-$4 premium per barrel, which equates into $3-$4 million per cargo.

We consequently continue to insist that we are unable to obtain our whole oil requirement from domestic production and urge NUPRC to properly implement the domestic crude supply obligation as specified by the PIA.

Aliko Dangote, the Group CEO of the Dangote Group, recently engaged both government officials and multinational oil firms in a dispute over crude oil supply to the 650, 000 barrels per day plant.

While the NUPRC claimed that the refinery produced poor goods and desired a monopoly market, Dangote claimed that government officials were doing everything possible to sabotage his business and that the majority of his crude supplies were imported rather than sourced locally.

Various groups and individuals have since joined the debate, with many urging the Nigerian government to support the refinery rather than sabotage its efforts.