Dangote Refinery Accuses IOCs of Sabotage
…Calls for Government Intervention
By Patience Ikpeme
Dangote Oil Refinery and Petrochemicals has accused International Oil Companies (IOCs) of deliberately frustrating its efforts to buy domestic crude oil, forcing the refinery to import crude from as far away as the United States at a higher cost.
Devakumar Edwin, Vice President, Oil and Gas, Dangote Industries Limited (DIL), made the accusation during a training programme for energy editors. He said the IOCs were inflating prices and, at times, claiming there was no crude available for purchase.
“It seems that the IOCs’ objective is to ensure that our Petroleum Refinery fails,” Edwin alleged. “They are deliberately asking for ridiculous/humongous premium or, they simply state that crude is not available.”
Edwin said this has forced the Dangote Refinery to reduce production and pushed them to source crude oil internationally, impacting their production costs.
He explained that despite Nigeria having a Domestic Crude Oil Supply Obligation (DCSO) policy, the IOCs were not complying, hindering the Dangote Refinery’s ability to meet its production targets.
While the Dangote Refinery strives to meet international standards, Edwin also criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for issuing import licenses for “dirty” refined products, specifically diesel with high sulfur content.
He pointed out that this practice undermines the Dangote Refinery’s efforts and exposes Nigerians to health risks.
“It is sad that the country is giving import licences for such dirty diesel to be imported into Nigeria, when we have more than adequate petroleum refining capacity locally,” Edwin said.
He highlighted the recent decision by Belgium and the Netherlands to ban the export of low-quality fuels to West Africa, citing health concerns.
Edwin revealed that due to the challenges of buying domestic crude and competition from dirty fuel imports, the Dangote Refinery has begun exporting its products, including diesel and aviation fuel, to Europe and other parts of the world.
He urged the Nigerian government and National Assembly to intervene urgently to ensure a speedy implementation of the Petroleum Industry Act (PIA) and prioritize the interests of Nigeria and Nigerians.
Edwin called for stricter enforcement of the DCSO and a halt to the issuance of import licenses for dirty fuels, especially when there is sufficient domestic refining capacity.
He pointed to Ghana’s recent legislation banning the import of contaminated diesel and PMS as an example for Nigeria to follow.
The Dangote Refinery’s accusations against the IOCs and its concerns about dirty fuel imports will ignite a debate about protecting domestic industries and safeguarding public health in Nigeria’s oil and gas sector.
