A new development unfolded in the ongoing crude oil crisis affecting the operations of the Dangote Oil Refinery as the refinery and the Nigerian Upstream Petroleum Regulatory Commission engaged in a verbal altercation recently.
According to reports, the Dangote Group accused the NUPRC of inadequately enforcing the Domestic Crude Supply Obligations, stating their dissatisfaction with the current local crude oil allocation.
In response, the NUPRC refuted these claims, asserting that they had facilitated the supply of over 29 million barrels of crude oil to Dangote Refinery between January and June 2024.
However, Dangote Refinery quickly countered this statement by declaring that they did not receive the alleged 29 million barrels of crude.
In a statement released by its management, the commission clarified its actions in enforcing Section 109 of the Petroleum Industry Act, mentioning that nine refineries were supplied with crude oil despite low production levels.
The commission emphasized its commitment to Nigeria’s energy security by providing 32 million barrels of crude to various local refineries, including Dangote Refinery, in the first half of 2024.
They highlighted the steps taken to ensure compliance with the Domestic Crude Supply Obligations Regulation 2023 and the formation of a working committee for effective implementation.
Moreover, the NUPRC defended its facilitation of domestic crude oil supply to Dangote Refinery and other refineries through monthly production curtailment.
Specific figures were provided, indicating the allocation of crude barrels to different refineries, with Dangote receiving a significant portion.
The NUPRC warned that if necessary, licenses could be revoked based on contractual obligations but ruled out arbitrary revocations to maintain the integrity of agreements.
On the other hand, Dangote Petroleum Refinery reiterated its call for enforcing domestic crude supply obligations as per the Petroleum Industry Act, advocating for direct crude purchases from Nigerian producers to reduce intermediaries.
In response to NUPRC’s allocation claim, the refinery highlighted discrepancies and emphasized the need for direct procurement from local producers.
The ongoing feud stems from allegations of external influence on local crude prices and challenges in sourcing locally-produced crude for refining operations.
Despite conflicting perspectives, both parties continue to engage in dialogue to resolve the crude oil allocation discrepancies and ensure operational efficiency for the refining sector in Nigeria.
Dangote refinery reacts
To address the discrepancies in crude oil allocation and procurement processes, Dangote Petroleum Refinery remains committed to advocating for direct purchases from Nigerian producers as stipulated in the Petroleum Industry Act.
These ongoing discussions aim to streamline operations and ensure a transparent procurement process that benefits both the refineries and domestic crude oil producers in Nigeria.