Dangote Petroleum Refinery has refuted claims of reselling shipments of crude oil from the United States and Nigeria.
Reuters reported on Wednesday, based on information from three sources, that the refinery was reselling crude due to technical issues. However, when asked about the alleged operational problems affecting the crude distillation unit, a Dangote refinery executive confirmed that the unit is functioning properly.
The sources indicated that the refinery was offering grades such as US West Texas Intermediate (WTI) Midland crude and Nigerian Escravos and Forcados crude. Traders noted that while reselling by refineries is uncommon, it is not unheard of.
Anthony Chiejina, chief branding and communication officer for Dangote Group, addressed the claims in a statement, calling the report inaccurate.
“Our attention has been drawn to a misleading report about our crude distillation unit and allegations of reselling crude,” Chiejina said. “This is outright falsehood as we are not authorized to sell any crude we buy from Nigeria! Also, our CDU is working and in perfect condition. We advise you to ignore these false narratives being peddled by those intent on importing dirty fuels into the country.”
This issue arises amid ongoing disputes between the refinery and government agencies. On June 4, Aliko Dangote stated that some international oil companies (IOCs) were having difficulty supplying crude to his refinery.
On July 15, Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), countered this claim, stating that the Petroleum Industry Act (PIA) includes provisions for willing buyer-willing seller transactions. Despite this, on July 17, Dangote Industries Limited (DIL) maintained that IOCs are obstructing its efforts to purchase crude feedstock for the refinery.
Furthermore, on July 18, Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), remarked that local refineries, including the Dangote refinery, were producing inferior products compared to imported ones. However, on July 20, Dangote refuted claims that the petroleum products from its refinery were substandard.
