Key Points
- Accusations Against IOCs:
- Aliko Dangote’s refinery faces alleged sabotage from International Oil Companies (IOCs).
- These companies are accused of raising local crude prices above market rates, forcing the Dangote refinery to import crude at higher costs from the United States.
- Dangote Refinery Operations:
- The refinery, with a capacity to refine 650,000 barrels of crude oil per day, began operations a few months ago.
- It plans to start supplying premium motor spirit (PMS) by next month.
- Challenges Highlighted:
- Devakumar Edwin, Vice President for Oil and Gas at Dangote Industries Limited, claims the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) issues licences to import substandard refined products, harming the local market.
- Edwin urges government support, stating that despite being the only company to deliver on refinery promises, the refinery faces deliberate obstacles from IOCs.
- Government and Regulatory Support:
- The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is commended for attempting to allocate crude to the refinery.
- Edwin accuses IOCs of either demanding excessive premiums or claiming unavailability of crude, which has led to reduced output and increased import costs for the refinery.
- Economic and Health Implications:
- Edwin criticizes the continued issuance of import licences for dirty diesel, arguing that it contributes to unemployment, poverty, and health issues in Nigeria.
- European countries like Belgium and the Netherlands have recently banned the export of high-sulphur diesel to West Africa due to its carcinogenic properties.
- Historical Context and International Measures:
- Since 2017, international organizations have revealed the large-scale export of polluted fuels to West Africa, with European ports being major exporters.
- Recent measures by Belgium and the Netherlands aim to align fuel export standards with European domestic standards to protect African consumers from toxic fuels.
- Call for Government Action:
- Edwin emphasizes the need for government intervention to prevent IOCs from exploiting Nigeria and ensure the refinery’s success.
- He stresses that local refining capacity should be utilized to avoid dependency on imported, substandard fuels.
Conclusion:
The Dangote refinery's struggle against alleged sabotage by IOCs underscores the broader challenges in Nigeria's oil sector. Dangote Industries calls for stronger government support and regulatory measures to protect local refining operations and reduce reliance on harmful imported fuels.
- Accusations Against IOCs:
- Aliko Dangote’s refinery faces alleged sabotage from International Oil Companies (IOCs).
- These companies are accused of raising local crude prices above market rates, forcing the Dangote refinery to import crude at higher costs from the United States.
- Dangote Refinery Operations:
- The refinery, with a capacity to refine 650,000 barrels of crude oil per day, began operations a few months ago.
- It plans to start supplying premium motor spirit (PMS) by next month.
- Challenges Highlighted:
- Devakumar Edwin, Vice President for Oil and Gas at Dangote Industries Limited, claims the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) issues licences to import substandard refined products, harming the local market.
- Edwin urges government support, stating that despite being the only company to deliver on refinery promises, the refinery faces deliberate obstacles from IOCs.
- Government and Regulatory Support:
- The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is commended for attempting to allocate crude to the refinery.
- Edwin accuses IOCs of either demanding excessive premiums or claiming unavailability of crude, which has led to reduced output and increased import costs for the refinery.
- Economic and Health Implications:
- Edwin criticizes the continued issuance of import licences for dirty diesel, arguing that it contributes to unemployment, poverty, and health issues in Nigeria.
- European countries like Belgium and the Netherlands have recently banned the export of high-sulphur diesel to West Africa due to its carcinogenic properties.
- Historical Context and International Measures:
- Since 2017, international organizations have revealed the large-scale export of polluted fuels to West Africa, with European ports being major exporters.
- Recent measures by Belgium and the Netherlands aim to align fuel export standards with European domestic standards to protect African consumers from toxic fuels.
- Call for Government Action:
- Edwin emphasizes the need for government intervention to prevent IOCs from exploiting Nigeria and ensure the refinery’s success.
- He stresses that local refining capacity should be utilized to avoid dependency on imported, substandard fuels.
Conclusion:
The Dangote refinery's struggle against alleged sabotage by IOCs underscores the broader challenges in Nigeria's oil sector. Dangote Industries calls for stronger government support and regulatory measures to protect local refining operations and reduce reliance on harmful imported fuels.