Dangote Oil Refinery Denies Report of Reselling Crude Oil
In a statement, the Dangote Oil Refinery has denied a report by Reuters that it is reselling cargoes of crude oil bought from the United States and Nigeria to other traders. The refinery’s spokesperson, Tony Chiejina, described the report as “outright falsehood” in an interview with The PUNCH.
According to Chiejina, the refinery is still sourcing crude from Angola and Libya, and the crude distillation unit is in good condition. He also urged the public to disregard the report, stating that it is likely driven by interests opposed to the local refining of fuels.
The report had claimed that three of the four trade sources familiar with the matter said the reoffer was linked to technical problems at the refinery. However, Chiejina disputed this, saying that the refinery’s crude distillation unit is fully operational and functioning optimally.
The Dangote Oil Refinery, which started operations earlier this year, has faced complaints about crude shortage. Sources had said that cargoes of Nigerian Escravos and Forcados were among the crude grades offered, as well as US WTI Midland.
The refinery’s Vice President, Oil & Gas, Mr. DVG Edwin, had recently alleged that International Oil Companies (IOCs) operating in Nigeria had consistently frustrated the company’s requests for locally produced crude as feedstock for its refining process. Edwin stated that the IOCs were deliberately and willfully frustrating the refinery’s efforts to buy local crude, forcing the refinery to import crude from countries as far as the US, with attendant high costs.
The refinery’s operations have been hindered by the IOCs’ refusal to sell crude at market prices, according to Edwin. He stated that the IOCs’ objective is to ensure that Nigeria remains a country that exports crude oil and imports refined petroleum products, creating employment and wealth for their countries.
The Dangote Oil Refinery is a 650,000 barrel-per-day refinery, and its operations are critical to Nigeria’s energy security. The refinery’s denial of the report is likely to allay concerns about its activities and maintain public trust in the refinery’s operations.
