We Have Never Accused NNPC of Not Supplying Us with Crude – Dangote

Dangote Refinery has revealed that the Nigerian National Petroleum Company Limited (NNPCL) provided approximately 60 percent of the 50 million barrels of crude oil it recently lifted.

The company has therefore pointed fingers at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its perceived reluctance to enforce the domestic crude supply obligation, which has hindered the refinery from receiving its full crude oil requirement from NNPCL and International Oil Companies (IOCs).

Anthony Chiejina, Group Chief, Branding and Communications Officer, made this known in a statement obtained by Advisors Reports on Thursday.

Chiejina said, “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 ensure that we receive our full crude requirement from NNPC and the IOCs.

“For September, our requirement is 15 cargoes, of which NNPC allocated six (6).

“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.

Group Chief, Branding and Communications Officer further confirmed that the company 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.

The management of the company has therefore still insisted 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.

Aliyu Suleiman, Group Chief Strategy Officer of Dangote Refinery and Petrochemicals Company, stated during an interactive session organised by the Senate Ad-hoc Committee investigating alleged sabotage in the Nigerian petroleum industry on Wednesday, “We express our gratitude to NNPC for their strong partnership.”

Suleiman revealed that 60 percent of the crude supplied to the refinery came from the Nigerian National Petroleum Company Limited (NNPCL), with approximately 20 percent imported and 20 percent purchased from other sources.

He added, “We are prepared to pay fair prices and do not dispute the pricing set by NNPCL. However, we believe the regulator should address the issues related to our purchases from other producers. The regulator has issued guidelines, and we expect them to enforce these guidelines effectively.”

Engr. Gbenga Komolafe, Commission Chief Executive (CCE) had in his goodwill message at the opening ceremony of the 2024 Nigeria Annual International Conference &Exhibition (NAICE) organised by the Society of Petroleum Engineers (SPE) Nigeria Council, in Lagos on Monday said that the Commission is enhancing its alignment with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on administering the Domestic Crude Supply Obligation (DCSO) and the Domestic Gas Delivery Obligation (DGDO).

According to him, NUPRC is confident that the efforts to foster regulatory alignment in this respect will stimulate further activities for domestic energy security in the short term.

He said, “We will not rest on our oars! We are committed to entrenching collaboration for enhanced value to the industry and the nation.”