Dangote Refinery levels accusations of sabotage at International Oil Companies (IOCs)

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Nigeria’s Dangote Refinery has ignited controversy by accusing International Oil Companies (IOCs) of sabotage regarding crude oil supply. The refinery, yet to be officially commissioned, alleges a deliberate attempt by the IOCs to cripple its operations and ensure its failure.

Details on the specific accusations are limited. However, the statement from Dangote Refinery suggests a potential breakdown in negotiations or disagreements over pricing and supply terms with the IOCs. These companies, which have dominated Nigeria’s oil sector for decades, could view the massive Dangote Refinery as a significant competitor.

The management of the 650,000 barrels per day (bpd) Dangote Refinery at the weekend accused International Oil Companies (IOCs) operating in Nigeria of planning to ensure the failure of the $19 billion refining facility.

Vice President, Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, said the multinationals were deliberately frustrating the refinery’s efforts to buy local crude by jerking up premium price above the market price.

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Speaking to a group of energy editors at a one-day training programme, organised by Dangote Group, Edwin said the situation was forcing the refinery to import crude from countries as far as the US, with the attendant high costs.

He also lamented that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) was still granting import licences, indiscriminately, to marketers to import dirty refined products into the country.

Edwin disclosed that the federal government issued 25 licences to investors to build refineries, but Dangote Refinery was the only one that delivered on its promise.

He said the Dangote group deserved every support from the Nigerian government, especially with the Domestic Crude Supply Obligation (DCSO), as specified in the enabling law.

Edwin pointed out, “It is good to note that from the start of production, more than 3.5 billion litres, which represent 90 per cent of our production, has been exported.

“We are calling on the federal government and regulators to give us the necessary support in order to create jobs and prosperity for the nation.”

He observed that while the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) was trying its best to allocate crude oil to the refinery, the foreign oil companies were bent on frustrating the move.

Edwin stated, “The IOCs are deliberately and wilfully frustrating our efforts to buy the local crude. The NUPRC recently met with crude oil producers as well as refineries owners in Nigeria in a bid to ensure full adherence to DCSO, as enunciated under Section 109(2) of the Petroleum Industry Act (PIA).

“It seems that the IOCs’ objective is to ensure that our petroleum refinery fails. It is either they are deliberately asking for ridiculous and humongous premium or they simply state that crude is not available.”

The Nigerian National Petroleum Corporation (NNPC) is likely to play a crucial role in mediating this dispute. The NNPC is the state-owned oil company responsible for allocating crude oil quotas to various players in the industry.

Tags: Dangote Refinery, Nigerian National Petroleum Corporation, NNPC, Petroleum Industry Act, PIA, Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Domestic Crude Supply Obligation, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Domestic Crude Supply Obligation