Dangote Refinery Accuses IOCs of Sabotage Amidst Importation Challenges
The Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, has accused International Oil Companies (IOCs) operating in Nigeria of deliberate efforts to stifle the operations of the newly established Dangote Oil Refinery and Petrochemicals.
Edwin made these allegations during a media interaction at a training program organized by the Dangote Group over the weekend.
According to Edwin, the International Oil Companies are intentionally inflating the cost of local crude oil beyond market rates, compelling the refinery to resort to importing crude from as far as the United States. This, he claimed, significantly increases production costs for the refinery.
“The IOCs are deliberately and willfully frustrating our efforts to purchase local crude by imposing exorbitant premiums, sometimes as high as $6 above market price,” Edwin stated.
He emphasized that such practices have forced the refinery to reduce its output and increase reliance on imported crude oil, undermining its efficiency and economic viability.
Highlighting regulatory concerns, Edwin criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority for allegedly issuing licenses indiscriminately to marketers importing substandard refined products into the country.
He asserted that despite the issuance of 25 refinery construction licenses by the Federal Government, only Dangote Group has successfully delivered on its promise.
Edwin appealed for government support, noting that Dangote Refinery has exported over 3.5 billion liters of diesel and aviation fuel, representing 90% of its production, in recent months.
He underscored the refinery’s potential to create jobs and enhance national prosperity if adequately supported by regulatory bodies and the government.
In response to challenges posed by imported dirty fuels, Edwin criticized the authorization of import licenses for highly sulfurized diesel and aviation fuel, citing adverse health and economic impacts on Nigerians.
He referenced recent actions by European countries like Belgium and the Netherlands to restrict exports of such fuels to West Africa due to environmental and health concerns.
Despite these challenges, Edwin affirmed that Dangote Refinery remains committed to meeting international standards and contributing positively to Nigeria’s energy independence.
He urged swift implementation of the Petroleum Industry Act (PIA) and stronger regulatory oversight to protect local industries and consumers from harmful practices.
Efforts to obtain comments from the IOCs through the Oil Producers Trade Section of the Lagos Chamber of Commerce and Industry were unsuccessful at the time of reporting.
Similarly, the Director-General of LCCI, Chinyere Almona, and spokesperson of NMDPRA, George Ene-Ita, had not responded to requests for comment on the allegations made by Dangote officials.
The accusations by Dangote Refinery underscore ongoing tensions within Nigeria’s oil sector, highlighting the complex dynamics between local production and international market influences.
