Close Menu
    Facebook X (Twitter) Instagram
    Trending
    • We Uncovered ‘Mind-Boggling’ Corruption In NNPCL, Asset Tracing Leads To Iceland – EFCC Chairman
    • Ex-SGF Says Tinubu Didn’t Make Buhari President In 2015′, Garba Shehu’s Book Launch Sparks Historical Clarification
    • Age Falsification: Court Orders IGP To Produce Five Ex-Senior Police Officers For Arraignment
    • FG Urges US To Reconsider Visa Restrictions, Cites Impact On Bilateral Ties
    • I’m Still In PDP, Have No Intention Of Going Anywhere, Zamfara Governor Insists
    • Three Policemen, Two Soldiers Dead As Security Forces Killed 30 Bandits In Katsina
    • Ganduje Inaugurated As FAAN Board Chairman
    • Gombe Governor Reconstitutes Key Commissions, Boards; Appoints Chairmen, Members
    Facebook X (Twitter) Instagram
    NEWS POINT NIGERIANEWS POINT NIGERIA
    UBA 720X90
    • HOME
    • NEWS

      We Uncovered ‘Mind-Boggling’ Corruption In NNPCL, Asset Tracing Leads To Iceland – EFCC Chairman

      July 9, 2025

      Ex-SGF Says Tinubu Didn’t Make Buhari President In 2015′, Garba Shehu’s Book Launch Sparks Historical Clarification

      July 9, 2025

      Age Falsification: Court Orders IGP To Produce Five Ex-Senior Police Officers For Arraignment

      July 9, 2025

      FG Urges US To Reconsider Visa Restrictions, Cites Impact On Bilateral Ties

      July 9, 2025

      I’m Still In PDP, Have No Intention Of Going Anywhere, Zamfara Governor Insists

      July 9, 2025
    • COLUMN

      There Is Pain Behind That Smile. Just Do Your Bit – By Dr Hassan Gimba

      July 6, 2025

      What Can Nigeria Learn From China’s Electricity Revolution? – By Dr Dakuku Peterside

      July 6, 2025

      Amaechi: Nigerian Politicians And Doublespeak – By Kazeem Akintunde

      July 6, 2025

      Remembering ‘Watergate Scandal’ And Danger Of Crippling Opposition – By Martins Oloja

      July 6, 2025

      Don’t Kill Yourself Because He’s Cheating – By Funke Egbemode

      July 6, 2025
    • EDUCATION

      13 Countries Offering Free Or Low-Cost PhD Programmes For Non-Citizens

      January 25, 2025

      NECO: Abia, Imo Top Performing States In Two Years, Katsina, Zamfara Come Last

      October 3, 2024

      NBTE Accredits 17 Programmes At Federal Polytechnic Kabo

      August 20, 2024

      15 Most Expensive Universities In Nigeria

      May 19, 2024

      FULL LIST: Tinubu Appoints Former SGF Yayale, Ex-Governor Yuguda, Muhammad Abacha, Jega In Universities’ Governing Councils

      May 18, 2024
    • INTERNATIONAL

      UK Threatens Further Action Against Israel If Gaza Ceasefire Proposal Fails

      July 8, 2025

      Texas Flood Death Toll Passes 100 As More Bodies Recovered

      July 8, 2025

      Iran President, Masoud Pezeshkian Says Israel Attempted To Assassinate Him

      July 7, 2025

      Trump, Brazil’s Lula Clash Over Politically Charged Coup Trial

      July 7, 2025

      Israeli Army Targets Gaza City With Heavy Strikes, Killing 39

      July 6, 2025
    • JUDICIARY

      FULL LIST: Judicial Council Recommends Appointment Of 11 Supreme Court Justices

      December 6, 2023

      Supreme Court: Judicial Council Screens 22 Nominees, Candidates Face DSS, Others

      November 29, 2023

      FULL LIST: Judicial Commission Nominates 22 Justices For Elevation To Supreme Court

      November 16, 2023

      Seven Key Issues Resolved By Seven Supreme Court Judges

      October 26, 2023

      FULL LIST: CJN To Swear In Falana’s Wife, 57 Others As SANs November 27

      October 12, 2023
    • POLITICS

      What Peter Obi May Lose If He Joins Coalition As VP Candidate

      May 25, 2025

      Atiku Moves To Unseat Wike’s Damagum As PDP Chairman, Backs Suswam As Replacement

      April 15, 2024

      Edo’s Senator Matthew Uroghide, Others Defect To APC

      April 13, 2024

      Finally, Wike Opens Up On Rift With Peter Odili

      April 2, 2024

      El-Rufa’i’s Debt Burden: APC Suspends Women Leader For Criticising Kaduna Gov

      March 31, 2024
    • SPORTS

      Ahmed Musa Denies Distributing SUVs To Kano Pillars Players

      July 8, 2025

      Joao Pedro Shines As Chelsea Beat Fluminense To Reach Club World Cup Final

      July 8, 2025

      WAFCON: Babajide Pays Tribute To Jota After Scoring In Falcons’ Victory Over Tunisia

      July 7, 2025

      Arsenal Close In On Gyokeres Deal After Face-To-Face Talks

      July 7, 2025

      THROWBACK: How I Became Known As Dodo Mayana – Peter Rufai

      July 6, 2025
    • MORE
      • AFRICA
      • ANALYSIS
      • BUSINESS
      • ENTERTAINMENT
      • FEATURED
      • LENS SPEAK
      • INFO – TECH
      • INTERVIEW
      • NIGERIA DECIDES
      • OPINION
      • Personality Profile
      • Picture of the month
      • Science
      • Special Project
      • Videos
      • Weekend Sports
    NEWS POINT NIGERIANEWS POINT NIGERIA
    UBA 720X90
    Home - International Oil Companies Causing Crude Supply Problem For Us, Dangote Refinery Cries Out

    International Oil Companies Causing Crude Supply Problem For Us, Dangote Refinery Cries Out

    By Maryam GarbaJuly 18, 2024
    Dangote Faults

    THE Management of Dangote Industries Limited has insisted that the international oil companies are still frustrating crude supply to its 650,000-capacity refinery.

    The management said this even as it commended the Nigerian Upstream Petroleum Regulatory Commission for its various interventions in the oil company’s crude supply requests from IOCs, and for publishing the Domestic Crude Supply Obligation guidelines to enshrine transparency in the oil industry.

    In a statement on Wednesday, the Dangote Group alleged that the IOCs insisted on selling crude oil to its refinery through their foreign agents, 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.

    UBA

    The group also alleged that the foreign oil producers seemed to be prioritising Asian countries in selling the crude they produced in Nigeria.

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

    WIDGET ADS

    Edwin insisted that IOCs operating in Nigeria had consistently frustrated the company’s requests for locally-produced crude as feedstock for its refining process.

    He stated that when cargoes were offered to the oil company by the trading arms, it was sometimes at a $2 to $4 (per barrel) premium above the official price set by the NUPRC.

    Thomas Sankara African Leadership Prize

    “As an example, we paid $96.23 per barrel for a cargo of Bonga crude grade in April (excluding transport). The price consisted of a $90.15 dated Brent price plus a $5.08 NNPC premium plus a $1 trader premium. In the same month, we were able to buy WTI at a dated Brent price of $90.15 + $0.93 trader premium including transport. When the Nigerian National Petroleum Company Limited subsequently lowered its premium based on market feedback that it was too high, some traders then started asking us for a premium of up to $4m over and above the NSP for a cargo of Bonny Light.

    “Data on platforms like Platts and Argus shows that the price offered to us is way higher than the market prices tracked by these platforms. We recently had to escalate this to NUPRC,” Edwin said, urging the commission to take a second look at the issue of pricing.

    Nigerian TAX Reform - Federal Goverment

    Edwin was reacting to a statement by the Chief Executive of the NUPRC, Gbenga Komolafe, who in an interview on national television said, “It is ‘erroneous’ for one to say that the International Oil Companies are refusing to make crude oil available to domestic refiners, as the Petroleum Industry Act has a stipulation that calls for a willing-buyer, willing-seller relationship.”

    While noting that the commission had been very supportive of the Dangote refinery as it had intervened several times to help secure crude supply, Edwin, however, insisted that the NUPRC boss might have been misquoted by some people hence his statement that IOCs did not refuse to sell to us.

    “To set the records straight, we would like to recap the facts below. Aside from the NNPCL, to date, we have only purchased crude directly from only one local producer, Sapetro. All other producers refer us to their international trading arms. These international trading arms are non-value-adding middlemen who sit abroad and earn a margin from crude being produced and consumed in Nigeria. They are not bound by Nigerian laws and do not pay taxes in Nigeria on the unjustifiable margin they earn.

    National Orientation Agency Page UP
    National Orientation Agency - Down

    “The trading arm of one of the IOCs refused to sell to us directly and asked us to find a middleman who would buy from them and then sell to us at a margin. We dialogued with them for nine months and in the end, we had to escalate to NUPRC who helped resolve the situation,” Edwin stated.

    He spoke further, “When we entered the market to purchase our crude requirement for August, the international trading arms told us that they had entered their Nigerian cargoes into a Pertamina (the Indonesia National Oil Company) tender, and we had to wait for the tender to conclude to see what is still available. This is not the first time. In many cases, particular crude grades we wish to buy are sold to Indian or other Asian refiners even before the cargoes are formally allocated in the curtailment meeting chaired by NUPRC.”

    He urged the NUPRC to take a second look at the issue of pricing, having severally asserted that transactions should be on a willing-seller, willing-buyer basis.

    For this to work, he said that there must be market liquidity (many sellers/many buyers in the market at the same time) unlike where a refinery needs a particular crude grade loading at a particular time then there is typically only one participant on either side of the market.

    “It is to avoid the problem of price gouging in an illiquid market that the domestic gas supply obligation specifies volume obligation per producer and a formula for transparently determining pricing. The fact that the domestic crude supply obligation as defined in the PIA has gaps is no reason for wisdom not to prevail,” Edwin stated.

    This newspaper reported earlier that the President of the Dangote Group, Alhaji Aliko Dangote, told editors during a tour of the refinery that the refinery was set to roll out its petrol in August 2024, having resolved its crude oil supply issues through the help of the Nigeria National Petroleum Company Limited and the Federal Government.

    Dangote’s comment came a few days after the NUPRC said crude oil producers in Nigeria had committed to working towards a sustainable supply of crude oil to Dangote and other local refineries under a market-determined pricing system.

    Both parties had said the commitment aimed to ensure that while the operators (crude oil producers) do business optimally, the refineries are not starved of feedstock.

    Crude Supply Dangote IOCs Refinery
    Share. Facebook Twitter WhatsApp LinkedIn Telegram Email

    Related Posts

    We Uncovered ‘Mind-Boggling’ Corruption In NNPCL, Asset Tracing Leads To Iceland – EFCC Chairman

    July 9, 2025

    Ex-SGF Says Tinubu Didn’t Make Buhari President In 2015′, Garba Shehu’s Book Launch Sparks Historical Clarification

    July 9, 2025

    Age Falsification: Court Orders IGP To Produce Five Ex-Senior Police Officers For Arraignment

    July 9, 2025

    FG Urges US To Reconsider Visa Restrictions, Cites Impact On Bilateral Ties

    July 9, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    Latest Posts

    We Uncovered ‘Mind-Boggling’ Corruption In NNPCL, Asset Tracing Leads To Iceland – EFCC Chairman

    July 9, 2025

    Ex-SGF Says Tinubu Didn’t Make Buhari President In 2015′, Garba Shehu’s Book Launch Sparks Historical Clarification

    July 9, 2025

    Age Falsification: Court Orders IGP To Produce Five Ex-Senior Police Officers For Arraignment

    July 9, 2025

    FG Urges US To Reconsider Visa Restrictions, Cites Impact On Bilateral Ties

    July 9, 2025

    I’m Still In PDP, Have No Intention Of Going Anywhere, Zamfara Governor Insists

    July 9, 2025
    Advertisement
    WIDGET ADS
    News Point NG
    © 2025 NEWS POINT NIGERIA Developed by ENGRMKS & CO.
    • Home
    • About us
    • Disclaimer
    • Our Advert Rates
    • Privacy Policy
    • Terms of Use

    Type above and press Enter to search. Press Esc to cancel.

    Join Us On WhatsApp