Dangote Industries Limited (DIL) has accused International Oil Companies (IOCs) operating in Nigeria of deliberately obstructing the operations of the Dangote Oil Refinery.
The allegation was made by Devakumar Edwin, Vice President of Oil and Gas at DIL, during a training program for energy journalists.
Edwin claimed that IOCs are inflating prices for locally sourced crude oil, making it difficult for the Dangote Refinery to secure supplies at reasonable costs.
He stated that despite efforts by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce domestic crude oil supply obligations under the Petroleum Industry Act (PIA), IOCs are either requesting astronomical prices or stating that there is no crude oil available.
According to Edwin, the Dangote Refinery has at times been forced to pay $6 more per barrel than the market price.
He implied that the actions of the IOCs are designed to guarantee the failure of the Dangote Petroleum Refinery.
The situation has reportedly forced the Dangote Refinery to reduce production and import crude oil from distant locations, such as the United States, significantly increasing their production costs.
The NUPRC has recently met with crude oil producers and refinery owners in Nigeria to ensure full adherence to domestic crude oil supply obligations as mandated by the PIA.
However, these efforts appear to be undermined by the actions of the IOCs.
The accusations highlight the challenges faced by domestic refineries in securing affordable crude oil supplies and raise questions about the commitment of IOCs to support Nigeria's domestic refining capacity.
