Dangote Refinery Critiques IOCs for Crude Sales Practices

Dangote Petroleum Refinery and Petrochemicals has expressed concerns regarding International Oil Companies (IOCs) in Nigeria selling crude oil intended for domestic refining through third parties, which adds costs and diminishes the competitiveness of Nigerian crude. In a statement on Tuesday, Devakumar Edwin, Group Vice President of Oil & Gas and Fertiliser at Dangote Industries Limited, clarified that the refinery is committed to sourcing Nigerian crude and adhering to the Domestic Crude Supply Obligation (DCSO) framework.

However, he noted challenges in securing crude directly from local producers, leading to reliance on IOCs and third parties. This reliance introduces additional premiums and transaction costs, making Nigerian crude less competitive compared to international alternatives.

Edwin stated that the refinery is prepared to purchase Nigerian crude if it is available in sufficient volumes and at competitive prices, as higher crude costs ultimately lead to increased prices for refined petroleum products in the domestic market.