Dangote Accuses International Oil Companies in Nigeria of Price Manipulation to Sabotage His Refinery

In a recent training program for Energy Editors hosted by the Dangote Group, Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited (DIL), alleged that International Oil Companies (IOCs) in Nigeria are deliberately undermining the Dangote Oil Refinery and Petrochemicals project. Edwin accused the IOCs of artificially inflating crude oil prices, making it difficult for the refinery to procure local crude. As a result, the refinery has been forced to import crude from distant countries like the United States, significantly increasing production costs.

Edwin highlighted the efforts of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to allocate crude to the refinery, but claimed that IOCs are thwarting these efforts. “While the NUPRC is trying their best to allocate crude for us, the IOCs are deliberately and willfully frustrating our efforts to buy local crude,” he stated. Edwin added that the IOCs either demand exorbitant premiums or claim that crude is unavailable, leading to instances where the refinery had to pay $6 above the market price for crude.

This situation has compelled the Dangote Refinery to reduce its output and rely on imported crude, thus escalating its production expenses. This allegation underscores the ongoing challenges faced by the Dangote Refinery, which is crucial for Nigeria’s ambition to become self-sufficient in refined petroleum product.