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Dangote Refinery Cuts Oil Inflows Due To High Prices

Dangote Refinery has attributed recent reductions in crude oil inflows to a strategic response to elevated global prices, not to […]

PENGASSAN

Dangote Refinery has attributed recent reductions in crude oil inflows to a strategic response to elevated global prices, not to operational failures. The company clarified this during a media tour on Friday, aiming to address concerns about crude volumes and potential outages at the facility. According to Edwin Devakumar, Vice President of Dangote Industries, the refinery adjusts its crude purchases based on price fluctuations and inventory levels.

The 650,000‑barrel‑per‑day plant has undergone several rounds of maintenance this year, which has lowered crude demand. Devakumar noted that no factory operates at 100 % capacity every day without issues; what matters is whether any problem affects final production. The refinery, which began operations earlier this year, is designed for turnaround maintenance every five years, unlike older facilities that require more frequent shutdowns. Nevertheless, Reuters reported four separate shutdowns of the refinery’s gasoline unit this year for maintenance—an unusually high frequency for a plant of its age.

Devakumar also addressed recent staff dismissals, revealing that the company had documented 22 sabotage attempts, including efforts to start fires and tamper with equipment. He credited the refinery’s fire‑protection and automated control systems with preventing damage. Sabotage is rare among local refineries, according to the Crude Oil Refinery Owners Association of Nigeria, a trade group representing domestic refiners.

Nigeria’s state‑owned refineries have remained mothballed due to years of corruption and neglect, making Dangote Refinery a crucial player in the country’s oil‑refining sector. The company’s clarification on crude inflows and maintenance shutdowns aims to alleviate concerns about its operations and potential impacts on the petroleum market. As global oil prices continue to fluctuate, industry stakeholders will closely monitor Dangote Refinery’s strategic adjustments to crude purchases and maintenance schedules.

Ifunanya

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