The dispute between the Dangote Refinery and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has taken a dramatic turn.
The two parties have exchanged barbs, with each accusing the other of not fulfilling their obligations.
The Dangote Oil Refinery, Nigeria’s largest refinery, has accused the NUPRC of failing to enforce the Domestic Crude Supply Obligation (DCSO) effectively. According to the refinery, it has not received enough crude oil locally, despite its commitment to process domestically-produced oil.
However, the NUPRC has disputed the refinery’s claim, stating that it has facilitated the supply of over 29 million barrels of crude oil to Dangote Refinery from January to June 2024. The commission claimed that nine refineries, including Dangote, received a total of 32 million barrels of crude oil during the same period.
In a swift response, the Dangote Refinery denied receiving the alleged 29 million barrels of crude oil. The refinery’s spokesperson, Anthony Chiejina, said that the company is yet to receive these cargoes and has only processed one crude cargo from a domestic producer.
The refinery’s management also expressed concerns that the NUPRC’s failure to enforce the DCSO is allowing international oil companies (IOCs) to sell crude oil to local refineries through their foreign agents, rather than directly to Nigerian refineries. This, they claim, is resulting in higher prices for crude oil and undermining the country’s energy security.
The NUPRC, on the other hand, argued that it has taken steps to ensure that domestic refiners receive their allocated crude oil supplies. According to the commission, nine refineries have benefited from the monthly production curtailment platform, with Dangote receiving 29 million barrels out of the total supply.
The dispute has led to a call for action by the government. The Vice President, Oil & Gas at Dangote Industries Limited, Edwin Ugochukwu, urged the government to implement the DCSO guidelines diligently, which would enable Nigerian refineries to buy crude oil directly from local producers.
Meanwhile, the President of the Dangote Group, Aliko Dangote, has denied allegations of monopoly and called for fair treatment for Nigerian refineries. He also questioned how he could be a monopoly when government-owned refineries are being renovated with $4 billion.
In a bid to address the issue, President Bola Tinubu has ordered the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to Dangote in naira. In related news, OPEC has predicted that Dangote refinery will disrupt Europe’s oil industry.
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