Dangote Petroleum Refinery has vehemently denied allegations of reselling crude oil shipments, following a report by Reuters that suggested operational issues at the plant were the cause. The report, released on Wednesday, indicated that technical problems had led the refinery to resell crude oil from the United States and Nigeria.
Reuters sources claimed that the refinery was offering various grades of crude, including US West Texas Intermediate (WTI) Midland and Nigerian Escravos and Forcados crudes. The report also noted that while such reselling practices are uncommon, they are not entirely unheard of.
In a swift rebuttal, Anthony Chiejina, Chief Branding and Communication Officer for Dangote Group, dismissed the claims as unfounded. “Our attention has been drawn to a misleading report on our crude distillation unit and the allegation that we are offering crude for resale,” Chiejina stated. He stressed that the refinery is not authorized to sell any of the crude it acquires from Nigeria and assured that the Crude Distillation Unit (CDU) is operating efficiently.
Chiejina urged the public to disregard what he described as false narratives aimed at discrediting the refinery.
The controversy has intensified amidst ongoing regulatory disputes. On June 4, Aliko Dangote, Africa’s wealthiest individual, disclosed challenges with international oil companies (IOCs) in supplying crude to the refinery.
However, Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), countered these claims on July 15. He asserted that the Petroleum Industry Act (PIA) provides for transactions between willing buyers and sellers, suggesting that regulatory frameworks are in place to address such issues.
Further intensifying the situation, on July 17, Dangote Industries Limited accused IOCs of obstructing its efforts to procure crude. This was followed by a statement from Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), criticisng the quality of products from local refineries, including Dangote’s, compared to imported ones.
In response to these regulatory criticisms, Dangote refuted allegations of substandard products from the refinery on July 20, reinforcing its commitment to maintaining high-quality standards.
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