Dangote reveals how international oil firms want to destroy refinery

• The Dangote refinery has accused international oil companies of trying to frustrate the refinery’s efforts
• Vice President of Oil and Gas at Dangote Industries, Devakumar Edwin, accused the IOCs of inflating crude oil prices
• He said the IOCs are quoting way above the market price, leading to the refinery importing crude oil from abroad

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, has accused international oil companies (IOCs) in Nigeria of trying to frustrate the survival of Dangote Refinery and Petrochemicals.

He said the IOCs deliberately and wilfully frustrate the refinery’s efforts to purchase crude oil by inflating the prime price above the market price, thereby compelling the refinery to import crude from other countries such as the US.

President of the Dangote Industries Limited, Aliko Dangote, blames oil mafia in Nigeria Credit: Bloomberg/Contributor
Source: Facebook

Dangote produces 3.5 billion liters of fuel.

Edwin, who spoke to a group of Energy Editors at a one-day training organized by the Dangote Group, said the refinery has exported about 90% of the 3.5 billion litres of petroleum products since it began operation and asked the Nigerian government to provide the refinery with the necessary support to create jobs for Nigeria.

Edwin said:

“While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is trying its best to allocate the crude for us, the IOCs are deliberately and willfully frustrating our efforts to buy the local oil. 

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) met with oil producers and refinery owners in Nigeria to ensure complete adherence to Domestic Crude Oil Supply Obligations (DCSO) per the Petroleum Industry Act (PIA).

IOCs inflate crude oil prices

According to reports, Edwin disclosed that the IOCs want to ensure that the refinery fails by asking for a ridiculous premium, saying that the refinery paid $6 per litre of crude above the market price.

He disclosed that the development had forced the refinery to import crude oil abroad.

Reports say Edwin disclosed that the IOCs are only interested in exporting raw materials to their home countries, creating employment and wealth in those countries, and adding to their GDPs while dumping expensive refined products into Nigeria.

Dangote blames oil mafia in Nigeria

Edwin’s statement comes amid similar claims by the President of Dangote Industries, Aliko Dangote, that the oil mafia in Nigeria tried to scuttle his plans to build the 650,000 bpd-capacity refinery.

He said that banks and other lenders refused to support the project except Afreximbank and Access Bank, which gave him financial backing.

Dangote’s claims were echoed by refinery owners, who blamed the oil mafia for trying to keep Nigeria perpetually dependent on imported petroleum products.

Dangote refinery ships fuel to Singapore

Legit.ng previously reported that the Dangote Refinery is set to export a shipment of low-sulfur straight-run fuel oil (LSSR) from Nigeria to Singapore this week.

The information is based on ship tracking data and market sources, indicating that this is the first time Africa’s largest refinery is entering the Asian market.

The shipment initiates a new trade route from the new refinery to Aisa, which reportedly lacks the low-sulfur fuel oil required for powering ships at Singapore, the world’s largest bunker hub.

Source: Legit.ng