The Dangote Petroleum Refinery has firmly denied recent allegations of reselling crude oil shipments following a report by Reuters suggesting operational issues at the plant. The report, published on Wednesday, claimed that due to technical problems, the refinery was reselling crude oil sourced 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. While the report noted that such reselling practices are rare, it acknowledged that they are not entirely unprecedented.
Anthony Chiejina, Chief Branding and Communication Officer for Dangote Group, responded to these claims, labeling them 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 emphasized that the refinery is not authorized 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), criticizing 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.
The ongoing disputes and allegations highlight the complex challenges facing the Dangote Refinery as it strives to establish itself as a key player in Nigeria’s petroleum industry.
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