Dangote Petroleum Refinery has denied allegations of reselling shipments of crude oil from the United States and Nigeria.
Reuters had reported on Wednesday, citing three sources, that the refinery was reselling crude due to technical problems. When asked about these rumors and operational issues affecting the crude distillation unit, an executive from Dangote refinery confirmed that the unit was operational.
The sources mentioned that the grades being offered included US West Texas Intermediate (WTI) Midland crude and Nigerian Escravos and Forcados crude. Traders noted that the refinery had been importing several crude cargoes monthly and that such resales, while rare, do happen.
In response, Anthony Chiejina, Chief Branding and Communication Officer of Dangote Group, dismissed the report as incorrect. He stated, “Our attention has been drawn to a misleading report on our crude distillation unit and claims that we are offering crude for resale. This is outright falsehood as we are not authorized to sell any crude we buy from Nigeria! Also, our CDU is working and in perfect condition. We advise that you ignore these false narratives being peddled by those bent on the importation of dirty fuels into the country.”
This controversy arises amid ongoing issues between the refinery and government agencies. On June 4, Aliko Dangote, Africa’s richest person, mentioned that international oil companies (IOCs) were struggling to supply crude to his refinery. However, on July 15, Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), refuted this claim, stating that the Petroleum Industry Act (PIA) has provisions for willing buyer-willing seller transactions.
On July 17, Dangote Industries Limited (DIL) management reiterated that IOCs were obstructing their attempts to purchase crude feedstock. The following day, Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), claimed that local refineries, including Dangote’s, were producing inferior products compared to imported ones. On July 20, Dangote refuted these claims, insisting that their petroleum products were not substandard.
(DailyPost)