3 months ago
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Mallam Mele Kyari, the Group CEO of NNPC Limited, refuted claims suggesting that crude oil producers in the country are intentionally withholding feedstock from the newly established $20 billion Dangote Refinery.
The NNPC boss clarified that the supply of crude oil to refineries is governed by the principle of a willing buyer and a willing seller.
Source: UGC
Kyari's response came after Dangote accused domestic oil producers of not supplying the refinery with the necessary crude oil for its operation.
Kyari clarifies crude supply protocols
In a statement released on Wednesday, August 7, by NNPC Chief Corporate Communications Officer Mr. Olufemi Soneye, it was mentioned that Mr.
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Kyari made these remarks while testifying before the Senate Ad-Hoc Committee investigating alleged economic sabotage in the Nigerian Petroleum Industry.
Kyari defended the national oil company's actions, asserting that NNPC has adhered to all relevant laws governing its operations and should not be implicated in any allegations of economic sabotage.
He emphasized that refining is a straightforward business, and any investor entering the market should be aware of this.
He said:
"This is basic and this determines what happens in any refinery anywhere in the world. That is the business of refining. We have done nothing to sabotage any domestic refinery”.Kyari asserted that the law is explicit regarding the obligation to supply domestic crude oil and to support local refineries.
Addressing allegations of importing substandard products, he clarified that NNPC Limited has no involvement in this issue, as the relevant regulatory agencies are legally responsible for preventing such products from entering the country.
He also noted that while there is sufficient infrastructure to produce two million barrels of crude oil per day, the sector is hindered by challenges such as crude oil theft, pipeline vandalism, and a lack of investment in upstream operations.
Source: Legit.ng
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