Dangote Refinery: High Cost Forced Rejection of 15.5m Barrels of Crude
• Says facility facing challenges in securing local supplies Peter Uzoho Dangote Petroleum Refinery and Petrochemicals has clarified its position following reports referencing data released by the Nigerian Upstream Petroleum
Dangote Petroleum Refinery and Petrochemicals disclosed its position in response to reports citing data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The NUPRC reported that the refinery rejected 15.5 million barrels of crude oil from local producers during the second quarter of 2026. Dangote Group affirmed its commitment to sourcing Nigerian crude oil and adhering to the Domestic Crude Supply Obligation (DCSO) framework.
The NUPRC stated that Dangote Refinery required 63 million barrels during Q2, while producers offered 68.1 million barrels - equivalent to 98% of the total 69.3 million barrels offered to domestic refiners. However, Dangote Refinery only accepted 52.6 million barrels, which was 77% of the crude offered to it and 10.4 million barrels below its required amount.
The group vice president of Oil & Gas and Fertiliser at Dangote Industries, Devakumar Edwin, emphasized that the key issue lies in the availability of crude at competitive market prices. Edwin highlighted that the refinery has consistently raised concerns about the insufficient availability of domestic crude and has encountered instances of crude being offered at prices significantly above market benchmarks.
The DCSO framework has posed challenges for securing domestic crude supplies, leading to reliance on International Oil Companies (IOCs) and third parties, which often introduces higher costs and makes domestically sourced crude less competitive compared to international market prices.
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