The crisis in Nigeria’s oil and gas sector continues as Dangote’s Refinery reports not having received 26 million barrels of crude oil allocation, despite claims by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Anthony Chiejina, the spokesperson for Dangote Group, disclosed this information on Friday, addressing NUPRC’s claim that it facilitated 26 million barrels of crude oil allocation to Dangote’s Refinery in the first quarter of 2024. NUPRC also mentioned plans to review its Domestic Crude Supply Obligation Regulations 2023.
Dangote Refinery clarified that they are still awaiting the crude allocation. “We appreciate the allocation but must inform you that we have yet to receive these cargoes,” the company stated. According to Dangote’s Refinery, NUPRC has only helped in the purchase of one crude cargo from a domestic producer. “Aside from the term supply negotiated with NNPC, so far NUPRC has only facilitated the purchase of one crude cargo from a domestic producer. The rest were bought from international traders,” the refinery added.
The company urged NUPRC to implement the Petroleum Industry Act (PIA), which mandates domestic crude obligations. “We want Nigerian refineries to buy crude directly from domestic producers rather than international middlemen, as specified in the PIA,” they emphasized.
Aliko Dangote, President and CEO of Dangote Group, previously accused NUPRC of hesitating to enforce domestic supply obligations for International Oil Companies and other refiners in Nigeria. This ongoing conflict between Dangote Refinery and NUPRC highlights the challenges in Nigeria’s oil and gas sector, despite President Bola Tinubu’s recent directive for the Nigerian National Petroleum Company Limited (NNPCL) to sell crude to local refineries in Naira – a directive that is yet to be implemented.
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