NNPC conditions: Dangote refinery may dump local market, export petrol
Dangote Petroleum Refinery has denied reselling shipments of crude oil from the United States (US) and Nigeria.
On Wednesday, Reuters reported three sources said the Dangote refinery was reselling due to technical problems at the refiner.
When questioned about the offers and talk circulating in the market regarding the refinery’s operational problems impacting the crude distillation unit, the publication said an executive at Dangote refinery said the unit is operating.
According to the sources, among the grades being offered were cargoes of US West Texas Intermediary (WTI) Midland crude and Nigerian Escravos and Forcados crude.
The plant has been importing several crude cargoes a month, traders said, adding that such resale by refineries is rare but not unknown.
However, in a statement addressing the claim, Anthony Chiejina, chief branding and communication officer, Dangote Group, said the report was incorrect.
“Our attention has been drawn to a misleading report on our crude distillation unit and also that we are offering crude for re-sale,” Chiejina said.
“This is outright falsehood as we are not authorised to sell any crude we buy from Nigeria!
“Also, our CDU is working and in perfect condition.
“We advise that you ignore these false narratives being peddled by those bent on the importation of dirty fuels into the country.”
On June 4, Aliko Dangote, Africa’s richest person, said some international oil companies (IOCs) were struggling to supply crude to his refinery.
Speaking on Arise TV on July 15, Gbenga Komolafe, chief executive officer (CEO) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), described the claim as “erroneous” as the Petroleum Industry Act (PIA) has provisions that guide willing buyer-willing seller transactions.
On July 17, the management of Dangote Industries Limited (DIL) insisted that IOCs are frustrating its request to purchase crude feedstock for the Dangote refinery.
The next day, Farouk Ahmed, CEO of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said local refineries, including the Dangote refinery, were producing inferior products compared to the ones imported into the country.
However, on July 20, Dangote refuted claims that petroleum products from his refinery are substandard.
[TheCable]
About The Author
