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Media reports that the Dangote Refinery has retracted, admitting that NNPC supplied roughly 60% of the 50 million barrels we lifted, have caught our attention.
To be clear, we have never charged NNPC with failing to provide us with crude. Our main worry has always been NUPRC’s unwillingness to uphold the domestic crude supply commitment and make sure NNPC and the IOCs provide us with all the crude we need.
Our requirement for September is fifteen cargoes, of which NNPC has allotted six. We have not been able to secure the remaining cargoes, even after appealing to NUPRC. When we contacted IOCs that are producing in Nigeria, they either told us that their cargoes were committed or pointed us in the direction of their international trading arms.
Because of this, we frequently pay an extra $3–$4 per barrel to foreign traders for the same Nigerian crude, amounting to $3–$4 million per cargo.
As a result, we continue to maintain that we are unable to obtain all of the crude we need from domestic production, and we implore NUPRC to strictly enforce the PIA’s requirement regarding domestic crude supply.
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