Dangote backs NUPRC on domestic crude supply guidelines

Dangote Industries Limited (DIL) has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its interventions in crude supply requests and the implementation of the Domestic Crude Supply Obligation (DCSO) guidelines.

These guidelines aim to increase transparency in the oil industry. However, DIL’s Vice President of Oil & Gas, DVG Edwin, pointed out ongoing challenges with International Oil Companies (IOCs) frustrating local crude supply requests.

Edwin highlighted that IOCs often sell crude at a premium, sometimes $2-$4 above the official price, which affects the refinery’s operations. He provided examples of higher costs for Bonga crude and Bonny Light compared to international prices.

Despite the NUPRC’s support, Edwin emphasized that international trading arms acting as middlemen inflate prices without adding value or paying taxes in Nigeria.

Edwin noted that DIL has only purchased crude directly from the Nigerian National Petroleum Corporation Limited (NNPCL) and one other local producer, Sapetro.

He urged NUPRC to reassess crude pricing and address the market liquidity issue to prevent price gouging.

Edwin called for the implementation of volume obligations and transparent pricing formulas to ensure fair market practices, aligning with the Petroleum Industry Act’s intent.

Vanguard