The Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, has accused International Oil Companies (IOCs) operating in Nigeria of deliberate efforts to hinder the operations of the Dangote Oil Refinery and Petrochemicals.
Speaking at a session with Energy Editors during a one-day training program organized by the Dangote Group, Edwin did not mince words as he detailed the challenges faced by their refinery.
“The IOCs are intentionally obstructing the refinery’s efforts to purchase local crude by inflating premium prices above market rates,” Edwin asserted.
He explained that these inflated prices force the refinery to seek crude from distant sources like the United States, significantly driving up production costs.
“While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is supportive and tries to allocate local crude for us, the IOCs are deliberately frustrating our efforts,” Edwin stated.
He highlighted recent efforts by the NUPRC to enforce the Domestic Crude Oil Supply Obligations (DCSO) under the Petroleum Industry Act (PIA), which aim to ensure fair access to domestic crude oil.
“It is either they demand ridiculous premiums or claim crude is unavailable,” Edwin continued, visibly concerned.
“At times, we have paid premiums as high as $6 above market rates.”
Edwin, who did not name specific IOCs, emphasised that these tactics have compelled the refinery to reduce its output and resort to importing crude from distant countries, adversely impacting their cost structure and operational efficiency.
Analysts say the implications are significant not only for Dangote Industries but also for Nigeria’s aspirations to strengthen its domestic refining capacity and reduce dependence on imported petroleum products.
