Dangote Refinery Raises Fresh Alarm Over Crude Oil Shortages
By Patience Ikpeme
Dangote Refinery has once again sounded the alarm over its inability to secure adequate crude oil supplies for its operations.
The refinery requires 15 cargoes of crude oil for September but has only been allocated six by the Nigerian National Petroleum Company (NNPC).
Despite numerous appeals to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the refinery has been unsuccessful in securing the remaining nine cargoes.
According to Anthony Chiejina, Group Chief, Branding and Communications Officer, Dangote Refinery, attempts to procure the shortfall from International Oil Companies (IOCs) operating in Nigeria have been futile. The IOCs have either redirected the refinery to their international trading arms or informed Dangote that their cargoes are already committed.
To bridge the supply gap, the refinery has resorted to purchasing the same Nigerian crude from international traders at a premium of $3-$4 per barrel, translating to an additional cost of $3-$4 million per cargo.
Dangote Refinery has reiterated its position that it cannot secure its full crude requirement from domestic production and has urged the NUPRC to strictly enforce the domestic crude supply obligation as stipulated in the Petroleum Industry Act (PIA).
This latest statement comes in response to a false narrative that the refinery has backtracked on its initial claims of inadequate crude supply. The refinery insists that while it has lifted about 60 million barrels of crude oil, the shortfall remains a significant challenge to its operations.
The development has raised concerns about the impact on the refinery’s production capacity and its ability to meet the growing demand for refined petroleum products in Nigeria.
