Dangote Refinery Reacts To Reports Of Reselling Shipments Of US Crude Oil
The report also suggested that such reselling practices, though rare, are not unprecedented.
Dangote Petroleum Refinery has denied claims that it has been reselling shipments of crude oil, contrary to a recent Reuters report that hinted at operational challenges at the facility.
The report, published on Thursday, claimed that due to technical problems, the refinery was reselling crude oil from the United States and Nigeria.
According to Reuters, sources indicated 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 suggested that such reselling practices, though rare, are not unprecedented.
In response, Chief Branding and Communication officer for Dangote Group, Anthony Chiejina, labelled the claims as false.
“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 also emphasised that the refinery is not authorised to sell any of the crude it acquires from Nigeria and affirmed that the Crude Distillation Unit (CDU) is operating efficiently.
Chiejina also urged the public to disregard what he termed as false narratives intended to discredit the refinery.
The controversy surrounding the refinery has escalated amid ongoing regulatory disputes. On June 4, Aliko Dangote, Africa’s wealthiest individual, revealed difficulties with international oil companies (IOCs) in supplying crude to the refinery.
Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), dismissed these claims on July 15, asserting that the Petroleum Industry Act (PIA) includes provisions for transactions between willing buyers and sellers.
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.
