Tinubu's Govt Directs IOCs To Sell Crude To Dangote Refinery

The Nigerian Upstream Petroleum Regulatory Commission has revealed that it has resolved to mandate international oil companies to supply crude oil to Dangote oil refinery.

The spokesperson for the NUPRC, Olaide Shonola, pointed out that the commission was intervening to ensure the local sale of crude to Dangote and other refineries in the country.

Shonola stated this while reacting to a claim by the Chairman of the Dangote Group that the international oil companies were not ready to sell crude to the refinery.

In an interview with newsmen on Wednesday, Shonola explained that he NUPRC would mandate the IOCs to sell to the Dangote refinery, with clear directives that this must be done.

“We’ve been intervening and intervening. I am sure you’re aware of a recent meeting that was held with them on domestic crude oil supply. We will keep engaging them, NUPRC has been doing that.

Read Also: We Expect PH Refinery To Begin Operation By July – Marketers

“I can’t say we will force them, but as the regulator, we can mandate. And that’s what we are doing, giving clear directives that this must be done. We will just keep on engaging and you will agree with me that most of these things have to be planned. We will keep on engaging. We will do our regulatory function in that area,” she stated.

Asked whether there would be sanctions, Shinola declined comments.

“We will mandate them, as in, give clear directives based on our regulatory functions,” she emphasised.

In an interview with CNN, Aliko Dangote said international oil companies in Nigeria were not ready to sell crude oil to the 650,000 barrels capacity oil refinery.

According to him, the international oil companies were used to exporting crude for foreign exchange and they were not ready to stop.

Dangote said though the Nigerian National Petroleum Company Ltd was doing its best to supply feedstock to the refinery, the IOCs wanted to sell outside the country.

“The NNPC is doing its best, but some of the IOCs, they are struggling to give us crude, everybody is used to exporting and nobody wants to stop exporting,” he stated.

The business mogul said Africa was not growing because it sells raw materials to the Western world and buys the same as finished goods.

“Africa is not going the way it should because we export raw materials and import finished goods. It doesn’t matter what it is, even if it is gold or whatever, raw material is always priced at a ridiculous amount compared to finished goods,” Dangote said.

He regretted that some individuals benefitting from oil import did not want the refinery to succeed.

Dangote disclosed that the refinery would take about 21 million barrels of crude oil from Nigeria every month, adding that 21 ships of crude would no longer import or export oil into Africa

Africa Today News, New York

Leave a Reply

Your email address will not be published. Required fields are marked *