The Management of Dangote Petroleum Refinery has strongly refuted a Reuters report suggesting that it is reselling crude oil shipments.
The report, published on Wednesday, alleged that technical issues at the refinery had led to the resale of crude from the United States and Nigeria, including US West Texas Intermediate (WTI) Midland and Nigerian Escravos and Forcados crudes.
In response, Anthony Chiejina, Chief Branding and Communication Officer for the Dangote Group, labeled the report as misleading. He emphasized that the refinery is not authorized to sell any of the crude it acquires and confirmed that the Crude Distillation Unit (CDU) is functioning efficiently.
Chiejina urged the public to disregard the false claims aimed at discrediting the refinery, amid ongoing regulatory disputes. The controversy has been heightened by recent challenges, including difficulties in crude supply disclosed by Aliko Dangote, Africa’s richest individual, on June 4.
On July 15, Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), dismissed concerns about crude supply issues, stating that the Petroleum Industry Act (PIA) supports transactions between buyers and sellers. This was followed by accusations from Dangote Industries Limited on July 17, alleging that international oil companies (IOCs) were hindering their crude procurement efforts.
Adding to the tension, Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), criticized the quality of products from local refineries, including Dangote’s. However, on July 20, Aliko Dangote rebutted these claims, affirming the refinery’s commitment to high-quality standards.
Claims and counterclaims have marred the smooth commissioning and operations of the largest refinery in Africa, heating the sector and ultimately, creating several different narratives which have led to the Nigerian Minister for Petroleum Resources (Oil), Senator Heineken Lokpobiri calling a reconciliatory meeting to fix the situation.
