The management of the 650,000 barrels per day (bpd) Dangote Refinery accused International Oil Companies (IOCs) operating in Nigeria of actively undermining the success of their $19 billion refining facility.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited (DIL), who made the accusation over the weekend asserted that these multinational corporations were deliberately obstructing the refinery’s operations by inflating the price of local crude beyond market rates.
Speaking at a training program organised by Dangote Group for energy editors, Edwin highlighted that this manipulation has forced the refinery to resort to importing crude from as far as the US, significantly increasing production costs.
He also criticised the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for indiscriminately issuing import licenses for substandard refined products, thereby complicating local refining efforts.
Edwin underscored that despite the federal government granting licenses to 25 investors to build refineries, only Dangote Refinery had fulfilled its commitment.
He emphasised the importance of government support, particularly in enforcing the Domestic Crude Supply Obligation (DCSO) as stipulated by law, to enable the refinery to contribute to national prosperity and job creation.
He further accused IOCs of hindering efforts by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to allocate crude oil to the refinery, implying a concerted effort to undermine its operations.
Edwin pointed out the broader implications, suggesting that IOCs’ actions perpetuate Nigeria’s dependence on imported petroleum products while exporting crude oil, thereby enriching their home countries at Nigeria’s expense.
Expressing concern over the issuance of import licenses for low-quality diesel and aviation fuel, Edwin highlighted international concerns about the health risks posed by these products, contrasting it with the refinery’s adherence to global standards in its operations.
Edwin called upon the federal government and the National Assembly to swiftly implement the Petroleum Industry Act (PIA) and protect Nigeria’s economic interests. He cited recent legislative actions by Ghana to ban the importation of contaminated fuels as a stark contrast to Nigeria’s current regulatory practices, urging decisive action to safeguard the nation’s refining sector and public health.
The Dangote refinery, located in Lagos, Nigeria, stands as the largest petroleum refinery in both Africa and Europe, boasting a formidable refining capacity of 650,000 barrels.
Its strategic position positions it not only to meet Nigeria’s petroleum needs but also to serve as a vital supplier to other African nations currently reliant on European energy sources.
Recent reports indicate that this $20 billion facility has commenced exporting jet fuel to Europe, marking a significant milestone in its operational capabilities.
Although the refinery has initiated diesel supply to the local market, there has been a slight delay, resulting in a rescheduled supply date now set for the middle of the upcoming month.
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