By using this site, you agree to the Privacy Policy and Terms & Conditions.
Accept
Okay.ngOkay.ngOkay.ng
Font ResizerAa
  • News
    • Politics
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Reading: Dangote Refinery Accuses IOCs of Frustrating Operations, Demands Direct Crude Supply
Share
Font ResizerAa
Okay.ngOkay.ng
  • News
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Search
  • News
    • Politics
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Follow US
  • About Okay.ng
  • Advertising on Okay.ng
  • Contact Okay.ng
  • Careers
  • Meet the Team behind Okay.ng
  • Ownership and Funding of Okay.ng
  • Editorial Principles at Okay.ng
© OKN MEDIA PUBLISHING 2022 - All rights reserved
Business

Dangote Refinery Accuses IOCs of Frustrating Operations, Demands Direct Crude Supply

Adamu Abubakar
By Adamu Abubakar
Published: July 18, 2024
Share
3 Min Read
Aliko Dangote
Aliko Dangote
SHARE

The Dangote Refinery has again accused International Oil Companies (IOCs) of frustrating its refinery operations by insisting on selling crude oil through their foreign agents. In a statement, the company said this practice leads to higher prices, with trading arms offering cargoes at $2 to $4 per barrel above the official price set by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The Vice President of Oil & Gas, Dangote Industries Limited, Mr. DVG Edwin, commended NUPRC for its interventions in the oil company’s crude supply requests from IOCs and for publishing the Domestic Crude Supply Obligation guidelines. However, he urged the regulatory commission to address the issue of pricing, stating that the current practice leads to price gouging in an illiquid market.

Edwin provided examples of how the company was charged higher prices for crude oil, including a cargo of Bonga crude grade in April, which cost $96.23 per barrel, excluding transport. He also noted that the company had to escalate the issue to NUPRC after traders asked for a premium of up to $4 million over and above the NNPC premium for a cargo of Bonny Light.

The full statement reads:

- Advertisement -

“Dangote commends NUPRC for publishing Domestic Crude Supply Obligation guidelines… Says local price will continue to increase because Trading arms offer cargoes at $2-$4 per barrel, above NUPRC official price… Insists IOCs are frustrating its crude supply demands

The Management of Dangote Industries Limited (DIL) have commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its various interventions in the oil company’s crude supply requests from International Oil Companies (IOCs), and for publishing the Domestic Crude Supply Obligation (DCSO) guidelines to enshrine transparency in the oil industry.

Vice President, Oil & Gas, Dangote Industries Limited, Mr. DVG Edwin however said: “If the Domestic Crude Supply Obligation (DCSO) guidelines are diligently implemented, this will ensure that we deal directly with the companies producing the crude oil in Nigeria as stipulated by the PIA.”

Edwin insisted that IOCs operating in Nigeria have consistently frustrated the company’s requests for locally produced crude as feedstock for its refining process. He highlighted that when cargoes are offered to the oil company by the trading arms, it is sometimes at $2-$4 (per barrel) premium above the official price set by NUPRC.

…We recently had to escalate this to NUPRC”, Edwin said, and urged the regulatory commission to take a second look at the issue of pricing.

The company alleged that the foreign oil producers seemed to be prioritising Asian countries in selling the crude they produced in Nigeria, saying the local price of crude would continue to increase because the trading arms offer cargoes at $2 to $4 per barrel, above NUPRC official price.

Stay Updated on the Go with Our Latest News—Join Our WhatsApp Channel Now!
TAGGED:Aliko Dangote
Share This Article
Facebook Whatsapp Whatsapp Telegram Email Copy Link Print
Previous Article Miister of Education, Tahir Mamman Admission Age Requirement Raised to 18 for Nigerian Higher Institutions, Announces Education Minister
Next Article Kaduna Assembly Asks Court to Dismiss El-Rufai’s Suit Over N423bn Probe

Connect with Okay on Social

FacebookLike
XFollow
InstagramFollow
TelegramFollow

Dollar/Naira Rates

Dollar to Naira Rate

Okay.ng Logo
Buy Rate ₦1,560.00
Sell Rate ₦1,570.00

Updated: 2 days ago

Displayed rates are for informational purposes only and are subject to change.

Quick Converter

- Advertisement -
- Advertisement -
Ad imageAd image
- Advertisement -
Ad imageAd image

Recent Posts

Anambra State Orders Investigation After Viral Video Shows Possible Anti-Touting Squad Excesses
News
Kano Governor, Emir Sanusi, and Jigawa Leaders Attend Alhaji Aminu Dantata’s Burial in Saudi Arabia
News
Two Firefighters Killed in Idaho Wildfire Ambush as Gunman Opens Fire
International
FG Rewards 18 Civil Servants with Cars, Laptops for Outstanding Service
News
FG Allocates N1.6tn to States, FCT for Infrastructure and Security Over 15 Months
News
- Advertisement -
Ad imageAd image

You May Also Like

PoliticsTop stories

PDP Crisis Deepens as Rival Factions Prepare for Separate NEC and National Caucus Meetings in Abuja

Oluwadara Akingbohungbe
Oluwadara Akingbohungbe
June 30, 2025
Energy & Oil

Dangote Refinery Unveils N720bn CNG Truck Fleet to Slash Fuel Costs, Save Nigeria Over N1.7trn Annually

Muhammad A. Aliyu
Muhammad A. Aliyu
June 30, 2025
Security

Nigerian Troops Neutralize Terror Kingpin Mai Dada, Recover Arms in Multi-Region Operations

Oluwadara Akingbohungbe
Oluwadara Akingbohungbe
June 29, 2025
Okay.ngOkay.ng
Follow US
© OKN MEDIA PUBLISHING 2025 - All rights reserved
  • About Okay.ng
  • Advertising on Okay.ng
  • Contact Okay.ng
  • Careers
  • Meet the Team behind Okay.ng
  • Ownership and Funding of Okay.ng
  • Editorial Principles at Okay.ng
adbanner
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?