Devakumar Edwin, the Vice President of Oil and Gas at Dangote Industries Limited (DIL), has accused International Oil Companies (IOCs) in Nigeria of actively trying to undermine the Dangote Oil Refinery and Petrochemicals. Edwin stated that the IOCs are intentionally obstructing the refinery’s efforts to purchase local crude by inflating premium prices above market rates, compelling the refinery to import crude from distant countries like the United States, leading to significantly higher costs. While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is trying to allocate crude to the refinery, the IOCs are “deliberately and willfully frustrating” these efforts, either by demanding “ridiculous/humongous premiums” or claiming crude is unavailable.
Edwin also criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for “indiscriminately issuing licenses to marketers to import substandard refined products”, which has forced the Dangote refinery to look abroad and recently export diesel and aviation fuel to Europe and other markets. Despite the refinery adhering to international standards and strict environmental regulations, enabling it to export products globally, the company is not receiving the necessary support from the government and regulators. Edwin appealed for urgent intervention to implement the Petroleum Industry Act (PIA) and safeguard Nigeria’s interests, emphasizing that the refinery deserves every support as it is the only one that has delivered on the government’s promise to build new refineries.
Citations:
[1] https://directorstalk.net/palm-oil-rises-on-strong-exports
[2] https://sunnewsonline.com/dangote-warns-of-iocs-sabotage-regulatory-threats-to-refinery-operations/
[3] https://www.vanguardngr.com/2024/06/protect-dangote-refinery-against-sabotage-nans-urges-fg/
[4] https://nairametrics.com/2024/06/23/dangote-accuses-iocs-of-crude-oil-price-manipulation-claims-firms-sabotaging-refinery/
[5] https://www.premiumtimesng.com/business/business-news/706327-dangote-refinery-accuses-international-oil-companies-nmdpra-of-sabotage.html