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 has criticized International Oil Companies (IOCs) and third parties for selling Nigerian crude meant for domestic refining through intermediaries. This practice, revealed by data from the Nigerian Upstream Petroleum Regulatory Commission, results in extra costs that make Nigerian crude less competitive.
Group Vice President, Oil & Gas and Fertiliser, Devakumar Edwin, stated that while the refinery is committed to sourcing Nigerian crude and supporting the Domestic Crude Supply Obligation framework, adequate volumes must be available at reasonable prices. Edwin explained that using IOCs and third parties often leads to additional premiums and transaction costs, driving up crude prices above market benchmarks.
He emphasized that the refinery's challenge lies in securing crude directly from domestic producers at commercially viable prices, rather than the volume of crude offered under the DCSO arrangement.
Written by urgent.news from Punch's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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