Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited (DIL), has accused International Oil Companies (IOCs) in Nigeria of trying to undermine the Dangote Oil Refinery and Petrochemicals. Edwin made these claims during a one-day training program for Energy Editors organized by the Dangote Group.
Edwin alleged that the IOCs are obstructing the refinery’s efforts to purchase local crude by inflating premium prices above market rates. This has forced the refinery to import crude from distant countries like the United States, significantly increasing costs.
“While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is trying its best to allocate crude for us, the IOCs are deliberately frustrating our efforts to buy local crude. At some point, we paid $6 over and above the market price. This has forced us to reduce our output and import crude from countries as far as the US, increasing our production costs,” Edwin said.
Related Stories
- Petrol Loading from Dangote Refinery to Begin Next Week, Say Marketers
- Dangote Refinery Faces Further Delays as Marketers Await Petrol Supply
The Petroleum Industry Act (PIA), signed under Buhari’s administration and recently reinstated by the NUPRC, mandates that IOCs must meet local demands by supplying crude oil to Nigerian refineries before exporting. However, Edwin claims that IOCs are failing to comply with this mandate.
In a recent interview with CNN, Aliko Dangote, Chairman and President of the Dangote refinery, echoed these concerns.
“The NNPC is doing its best, but some of the IOCs are struggling to give us crude. Everybody is used to exporting and nobody wants to stop exporting,” Dangote said.
The Dangote refinery, located in Lagos, Nigeria, is the largest petroleum refinery in Africa and Europe, with a refining capacity of 650,000 barrels per day. It is expected to supply petroleum products to Nigeria and other African countries that rely on Europe for their energy needs.
The $20 billion refinery has started exporting jet fuel to Europe and supplying diesel to the local market. However, a slight delay has postponed the supply date to the middle of next month.
Edwin emphasized the critical need for IOCs to comply with the domestic supply obligations to ensure the refinery’s success and stability in the local market.
“The objective seems to be to ensure our refinery fails, but we are committed to overcoming these challenges,” he said.