Amidst the ongoing controversy regarding crude oil supply to Dangote Refinery by the Nigerian National Petroleum Corporation Limited, NNPCL the company owned by Africa’s Richest Man, Aliko Dangote says it has never accused the government- controlled oil firm of not supplying crude oil to it.
“We have never accused NNPC of not supplying us with crude,” Dangote Refinery said in a statement on Thursday.
Recall that Dangote had few days ago said its operations were being hindered because the NNPCL and international oil company, IOCs, were not supply the firm enough feedstocks.
At the thick of the controversy, President Bola Ahmed Tinubu directed NNPCL to supply Dangote and other local refineries 450, 000 barrel of crude oil in other to end government efforts to end fuel importation in the country.
The transaction must be in Naira, Tinubu said adding that the aim is also to reduce the country’s Forex problems.
The supply from NNPCL represents four out of the 15 cargoes required by Dangote annually for its production, analysts say.
However, reacting to reports that it backtracked on its earlier claim that NNPCL did not supply the refinery crude oil, Dangote Refinery said yesterday that it only accused NUPRC of not enforcing the domestic crude supply obligations to the refinery by NNPCL and IOCs.
The refinery said in the statement that NUPRC must ensure that this is done going forward.
The statement said, “To clarify, (the media reports), we have never accused NNPC of not supplying us with crude. Our concern has always been NUPRC’s reluctance to enforce the domestic crude supply obligation and ensure that we receive our full crude requirement from NNPC and the IOCs.
“For September, our requirement is 15 cargoes, of which NNPC allocated six. Despite appealing to NUPRC, we’ve been unable to secure the remaining cargoes. When we approached IOCs producing in Nigeria, they redirected us to their international trading arms or responded that their cargoes were committed.
“Consequently, we often purchase the same Nigerian crude from international traders at an additional $3-$4 premium per barrel which translates to $3-$4 million per cargo
“We therefore still insist that we are unable to secure our full crude requirement from domestic production and urge NUPRC to fully enforce the domestic crude supply obligation as mandated by the PIA.”
The magazine reports that the House of Representatives, this week, dissolved the committee it set up to investigate the controversy between Dangote and NNPCL, as well as alleged sharp practices in Nigeria’s oil and gas sector. It’s a law and they just need to comply.”
Discover more from The Source
Subscribe to get the latest posts sent to your email.
