Dangote Petroleum Refinery urges NUPRC to enforce the Petroleum Industry Act's domestic crude supply obligation, allowing direct purchases from Nigerian producers. The refinery's management highlights the financial burden of buying crude from international traders and calls for the enforcement of domestic supply mandates for optimal refinery operations.
The Dangote Petroleum Refinery has urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce the Petroleum Industry Act (PIA) regarding domestic crude supply. The refinery's management insists that Nigerian refineries should be allowed to purchase crude oil directly from domestic producers rather than through international middlemen, as stipulated in the PIA.
Anthony Chiejina, the spokesperson for Dangote Group, acknowledged the allocation of 29 million barrels of crude oil to the refinery but expressed concern over the lack of direct supply. He emphasized that, aside from a bilateral agreement with the Nigerian National Petroleum Corporation Limited (NNPCL), the refinery has only received one crude cargo facilitated by the NUPRC, with the rest being procured from international traders.
Chiejina reiterated that the refinery is not receiving the full crude supply required for optimal operation. He stressed that the NUPRC’s failure to enforce the domestic crude supply obligation is forcing the refinery to purchase Nigerian crude at a premium from international traders. This additional cost, ranging from $3 to $4 million per cargo, significantly impacts the refinery’s operations.
The refinery’s management continues to appeal to the NUPRC to fulfill its mandate under the PIA, ensuring that refineries in Nigeria receive their full crude requirements from domestic production sources.
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