Dangote Refinery: Local Currency Crude Sales Fell Short of Target

SEATTLE (Oil Monster): The Nigerian refiners, including the giant Dangote Oil Refinery, have stated that they are still not receiving adequate supplies, despite the government’s directive in July this year to sell crude priced in local currency to local refiners for a six-month period starting October this year.

According to Edwin Devakumar, head of the Dangote refinery, the state-owned NNPC Limited had agreed to supply a minimum of 385,000 barrels per day of crude, as against the total requirement of 650,000 bpd. However, the agency has failed to keep their promise. The refinery aims to compete with European refiners, upon reaching full capacity, Devakumar added.

Mathins Obaze, an acting executive director of the Crude Oil Refinery-owners Association of Nigeria (CORAN) stated that the reason for short supply is still unknown. The members of the trade group are currently engaged with the government for an early resolution. It must be noted that the Dangote refinery had urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce a rule to compel oil producers to supply local refineries. However, NUPRC declined to comment on the matter.