Like Dangote, Edo refinery is opposing NUPRC, NNPCL over crude oil supply

Weeks after Dangote Industries Limited, the operator of the Dangote Refinery raised concerns about the inability to secure crude oil allocations under the Domestic Crude Oil Supply Obligation (DCSO), another operator has raised similar concerns.

This time, the management of AIPCC Energy Limited, operator of Edo Refinery and Petrochemicals Company Limited (ERPCL) lamented the shortage in crude oil supply despite having a fully functional 1,000 barrels per day crude oil refinery.

This is contrary to the position of the Nigerian National Petroleum Corporation Ltd (NNPCL Ltd) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on crude oil supply to refineries.

In a chat with journalists on Sunday, Edo refinery representative Segun Okeni said the company had yet to secure supplies from relevant authorities — despite President Bola Tinubu’s directive to supply crude to local refineries.

He said the company was facing significant challenges due to ongoing shortages in crude oil supplies.

The representative added that the refinery was barely able to operate at full capacity.

READ ALSO: Atiku warns against sabotaging Dangote refinery project

Okeni said although the company has had crude oil supply agreements with Seplat Energy and ND Western since 2022, bureaucratic hurdles have prevented the refinery from accessing much-needed crude feedstock.

He said: “On August 18, 2021, our team led by our chairman, met with the CEO of NNPCL and his top management team to discuss our intention to purchase crude oil from NNPCL and we immediately wrote to seek supply of crude oil, the letter was dated July 22, 2022.

“In July 2022, NNPC representatives (from Abuja headquarters and NPDC Benin) visited our facility to conduct a site inspection and confirm the mechanical completion of the Edo refinery.

“In September 2022, we were invited to attend a commercial negotiation meeting with the NNPC Head of Requirements, after which we sent a follow-up letter identifying the oil fields from which we could source crude oil.

“In March 2022, we also wrote a letter to the Ministry of Petroleum Resources, informing them of the status of our refinery, upcoming projects, and the challenges we are facing due to the lack of crude oil supply to our refinery.

“We have also written letters and held meetings with NNPC Exploration and Production Limited (NEPL) between November 2022 and March 2023, indicating our urgent need for crude oil supply from oil fields where NEPL has equity stakes.”

By: Babajide Okeowo

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