IOC supplies crude to Dangote refinery, government denies Dangote’s claims

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

Dangote, Africa’s richest man, accused some international oil companies (IOCs) of having difficulty supplying crude oil to the Dangote Oil Refinery while speaking on CNN’s ‘Connecting Africa’ program, which aired on June 3, 2024.

When asked whether domestic oil companies had supplied crude to the refinery, he said “there are challenges”.

Weeks later, Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, also accused IOC of planning to thwart the viability of the new Dangote Oil Refinery.

Edwin said the IOC deliberately and intentionally thwarted refineries’ efforts to buy local crude by raising costs above market prices, forcing refineries to import crude from far-flung countries such as the United States, with the high costs that come with it.

ALSO READ: Why we are not raising investment in Dangote Refinery – NNPCL

However, the NUPRC debunked the narrative on Monday when Engineer Gbenga Komolafe, the Chief Executive of the Commission while appearing in an interview with Arise TV revealed that the Dangote refinery receives crude sales from International Oil Companies (IOCs).

He said, based on the commission’s knowledge, the IOC provides crude oil to interested buyers, and the product is abundant.

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

“To the best of the commission’s knowledge, there is no such thing as an IOC being too large or not complying with their legal obligations to provide crude oil.

“The supply of crude oil is done at a certain price, and the legal provisions state that it must be done on the basis of a willing buyer and a willing seller.

“No producer has refused to supply crude oil to the Dangote refinery,” Komolafe said.

By: Babajide Okeowo

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