Dangote Refinery, Africa’s largest oil refinery, has reiterated its struggle to secure sufficient crude oil supplies, despite Nigerian National Petroleum Company (NNPC) claims of increased allocations.
Anthony Chiejina, Chief Branding and Communications Officer at Dangote Group, pointed to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for not enforcing the domestic crude supply obligation.
Chiejina clarified that while NNPC has supplied part of the required crude, the volume is inadequate. Dangote has struggled to secure the rest from NNPC and International Oil Companies (IOCs).
For September, the refinery needs 15 cargoes but has only received six from NNPC, with additional requests to IOCs leading to inflated prices and redirection to international trading arms.
Dangote has been forced to purchase Nigerian crude from international traders at higher costs, adding $3-$4 million per cargo to its expenses.
The company urges NUPRC to enforce the domestic crude supply obligation as mandated by the Petroleum Industry Act (PIA) to ensure it receives its full crude requirements.