Dangote Refinery Sought NUPRC Intervention in Non-Supply of Crude by IOCs

The refinery authorities noted that it was not able to secure the remaining cargoes despite appealing to the commission.

SEATTLE (Oil Monster):  The authorities of Nigerian Dangote Refinery alleged that crude supplies from oil producers continue to remain inadequate.

The company also raised concerns about the lack of intervention by government regulatory agency, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to ensure domestic crude supplies to the refinery, as obliged before. In a statement, Dangote Refinery said that the NNPC supplied only 60% of the total lifted quantity of 50 million barrels. Also, NNPC has allocated only 6 out of the total 15 cargoes required for the month of September 2024, it said.

The refinery authorities noted that it was not able to secure the remaining cargoes despite appealing to the commission. The International Oil Companies IOCs) with domestic production facility too redirected them to third parties. The refinery was informed by the IOCs that their cargoes have already been committed. As a result, the refinery is being forced to purchase Nigerian crude from international traders at a premium of approximately $3-$4 million per cargo, the authorities added.

The refinery alleged that it has not received fair treatment from both NUPRC and IOCs. Furthermore, it clarified that it has never accused NNPC Limited of not supplying crude oil.