IOCs selling Nigerian crude through third parties, Dangote laments
Dangote Refinery states IOCs sell Nigerian crude through third parties, increasing costs and making local crude uncompetitive. Read More: https://punchng.com/iocs-selling-nigerian-crude-through-third-parties-dangote-laments/
Dangote Petroleum Refinery and Petrochemicals has expressed concern over Nigerian crude being sold through third parties by International Oil Companies operating in Nigeria. This practice, revealed by the Nigerian Upstream Petroleum Regulatory Commission, has led to additional costs and made Nigerian crude less competitive. Group Vice President, Oil & Gas and Fertiliser, Devakumar Edwin, stated that while Dangote remains committed to sourcing Nigerian crude and supporting the Domestic Crude Supply Obligation framework, it has faced challenges in obtaining adequate volumes of crude directly from local producers.
The use of intermediaries often results in additional premiums and transaction costs, driving crude prices above international benchmarks. Edwin emphasized that Dangote is ready to purchase Nigerian crude at competitive prices, but only if it is available in sufficient quantity and commercially viable conditions.
Written by urgent.news from Punch Nigeria's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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