• About
  • Advertise
  • Contact
Friday, August 22, 2025
  • Login
Vital News
  • Frontpage
  • Business
  • Economy
  • Politics
  • National
  • Opinion
  • Sports
  • More
    • Crime
    • Judiciary
    • Security
No Result
View All Result
  • Frontpage
  • Business
  • Economy
  • Politics
  • National
  • Opinion
  • Sports
  • More
    • Crime
    • Judiciary
    • Security
No Result
View All Result
Vital News
No Result
View All Result
Home Oil & Gas

IOCs Are Frustrating Our Crude Supply Demands, Dangote Insists

.Commends NUPRC For Publishing Domestic Crude Supply Obligation Guidelines

Vital News by Vital News
July 17, 2024
in Oil & Gas
0
DANGOTE AND A WAR FORETOLD By  Dare BABARINSA

Dangote Refinery, Lekki, Lagos.

Share on FacebookShare on Twitter

…says local price of oil will continue to increase

The Management of Dangote Industries Limited (DIL) has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its various interventions in the oil company’s crude supply requests from the International Oil Companies (IOCs).

The company also commended NUPRC for publishing the Domestic Crude Supply Obligation (DCSO) guidelines to enshrine transparency in the oil industry.

Vice President, of Oil & Gas, Dangote Industries Limited, Mr. DVG Edwin gave the commendation ina statement obtained by Vital News on Wednesday.

He, however , said : “If the Domestic Crude Supply Obligation (DCSO) guidelines are diligently implemented, this will ensure that we deal directly with the companies producing the crude oil in Nigeria as stipulated by the PIA.”

RelatedStories

NLC Urges FG To Sell Enough Crude In Naira To Reduce Fuel Prices, Hails Dangote Refinery

Dangote Debunks Rumours Of Refinery Shutdown, Says PMS Gantry Price Remains N850

Kogi Govt Moves To Attract Investors To Exploit Oil, Gas Deposits

Dangote Says Tinubu’s Economic Policies Working, Reviving Private Sector

Edwin insisted that IOCs operating in Nigeria have consistently frustrated the company’s requests for locally produced crude as feedstock for its refining process.

He highlighted that when cargoes are offered to the oil company by the trading arms, it is sometimes at a $2-$4 (per barrel) premium above the official price set by NUPRC.

“As an example, we paid $96.23 per barrel for a cargo of Bonga crude grade in April (excluding transport).

“The price consisted of $90.15 dated Brent price + $5.08 NNPC premium (NSP) + $1 trader premium.

“In the same month, we were able to buy WTI at a dated Brent price of $90.15 + $0.93 trader premium including transport.

“When NNPC subsequently lowered its premium based on market feedback that it was too high, some traders then started asking us for a premium of up to $4m over and above the NSP for a cargo of Bonny Light.

“Data on platforms like Platts and Argus shows that the price offered to us is way higher than the market prices tracked by these platforms.

“We recently had to escalate this to NUPRC,” Edwin said.

He urged the regulatory commission to take a second look at the issue of pricing.

Edwin’s response came against the background of a statement by the Chief Executive Officer of NUPRC, Engr. Gbenga Komolafe, in an interview on ARISE News TV said that “it is ‘erroneous’ for one to say that the International Oil Companies (IOCs) are refusing to make crude oil available to domestic refiners, as the Petroleum Industry Act (PIA) has a stipulation that calls for a willing buyer-willing seller relationship.”

Edwin noted that : “The NUPRC has been very supportive to the Dangote Refinery as they have intervened several times to help us secure crude supply.

“However, the NUPRC Chief Executive was probably misquoted by some people hence his statement that IOCs did not refuse to sell to us.

“To set the records straight, we would like to recap the facts below.

“Aside from Nigerian National Petroleum Corporation Limited (NNPCL), to date, we have only purchased crude directly from one other local producer (Sapetro).

“All other producers refer us to their international trading arms.

“These international trading arms are non-value adding middlemen who sit abroad and earn margin from crude being produced and consumed in Nigeria.

“They are not bound by Nigerian laws and do not pay tax in Nigeria on the unjustifiable margin they earn.

“The trading arm of one of the IOCs refused to sell to us directly and asked us to find a middleman who would buy from them and then sell to us at a margin.

“We dialogued with them for 9 months and in the end, we had to escalate to NUPRC who helped resolve the situation,” Edwin stated.

According to him, when we entered the market to purchase our crude requirement for August, the international trading arms told us that they had entered their Nigerian cargoes into a Pertamina (the Indonesia National Oil Company) tender, and we had to wait for the tender to conclude to see what is still available.

“This is not the first time. In many cases, particular crude grades we wish to buy are sold to Indian or other Asian refiners even before the cargoes are formally allocated in the curtailment meeting chaired by NUPRC.

“However, we would like to urge NUPRC to take a second look at the issue of pricing.

“NUPRC has severally asserted that transactions should be on a willing seller / willing buyer basis.

“The challenge however is that market liquidity (many sellers / many buyers in the market at the same time) is a precondition for this.

“Where a refinery needs a particular crude grade loading at a particular time then there is typically only one participant on either side of the market.

“It is to avoid the problem of price gouging in an illiquid market that the domestic gas supply obligation specifies volume obligation per producer and a formula for transparently determining pricing.

“The fact that the domestic crude supply obligation as defined in the PIA has gaps is no reason for wisdom not to prevail”, Edwin stated.
(vitalnewsngr.com)

 

 

Tags: CrudeDangoteIOCssupply
Previous Post

Tinubu Appoints Mrs Walson – Jack As New HoS, Thanks Yemi – Esan For Stewardship

Next Post

Ododo Swears In 10 New Judges, Charges Them To Be Intentional In Promoting Justice

Vital News

Vital News

RelatedStories

NLC Urges FG To Sell Enough Crude In Naira To Reduce Fuel Prices, Hails Dangote Refinery
Oil & Gas

NLC Urges FG To Sell Enough Crude In Naira To Reduce Fuel Prices, Hails Dangote Refinery

August 13, 2025
Dangote Spends N720bln To Acquire 4,000 CNG Trucks, Begins Free Distribution Of Fuel August 15
Oil & Gas

Dangote Debunks Rumours Of Refinery Shutdown, Says PMS Gantry Price Remains N850

August 8, 2025
Kogi Govt Moves To Attract Investors To Exploit Oil, Gas Deposits
Business

Kogi Govt Moves To Attract Investors To Exploit Oil, Gas Deposits

August 8, 2025
Dangote Says Tinubu’s Economic Policies Working, Reviving Private Sector
Business

Dangote Says Tinubu’s Economic Policies Working, Reviving Private Sector

July 27, 2025
Africans In Position To Develop Africa, Dangote Tells Global CEOs
Oil & Gas

Dangote Urges African Leaders To Protect Local Industries From Unfair Competition

July 23, 2025
Next Post
Ododo Swears In 10 New Judges, Charges Them To Be Intentional In Promoting Justice

Ododo Swears In 10 New Judges, Charges Them To Be Intentional In Promoting Justice

Flooding : Lagos Begins Removal Of Structures On Drainage Setback

Sanwo-Olu Appoints New Chairman, Five Other Members For LASIEC

We Have Accepted N70,000 As New Minimum Wage – NLC, TUC

We Have Accepted N70,000 As New Minimum Wage - NLC, TUC

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow Us

Recommended

Rivers LGs : I Am Yet To See Details, Fubara Says As He Reacts To Supreme Court Judgment

Why We Locked Out Fubara – Rivers State Lawmakers

5 months ago

Ogun Cargo Airport Will Run Commercial Flights – Gov. Abiodun

3 years ago
At ECOWAS Summit , Tinubu Advocates Good Governance to Counter Coups in West Africa

One-off Windfall Tax On Banks Forex Profit, Creative Revenue Initiative For Capital Projects – TMSG

1 year ago

Train attack : NRC confirms safety of 14 additional passengers, says one more passenger missing

3 years ago

Instagram

    Please install/update and activate JNews Instagram plugin.

Categories

  • Agriculture/ Water/ Mineral
  • Aviation
  • Business
  • Crime
  • Culture
  • Economy
  • Education
  • Entertainment
  • Environment
  • Football
  • Foreign
  • Gender
  • Health
  • Judiciary
  • Labour
  • National
  • News
  • Oil & Gas
  • Opinion
  • Opinion
  • Politics
  • Power
  • Religion
  • Security
  • Sports
  • Transport
  • Uncategorized

Topics

Abiodun Abuja APC arrest Atiku Bandits Bello Benue Buhari CBN cement Court Dangote death dies drugs Economy EFCC Election elections FG gunmen Hajj INEC Kano kidnap Kill Kogi Kwara Lagos NDLEA Niger Nigeria Ododo Ogun Oyo PDP Police Power refinery rescue road Security students Tinubu
No Result
View All Result

Highlights

Don’t Stay Away From Home, President Tinubu Tell Nigerians In Japan, Says Nigeria On The Rise Again

Abia Secures $750mln World Bank Support For Renewable Energy

Woman Mistaken For Kidnapper Killed By Irate Mob In Ilorin

FG Empowers Colleges Of Education To Offer NCE, Degree Programmes Without University Affiliation

EFCC Arrests Deputy Vice Chancellor, Bank MD, Two Catholic Sisters Over N1.2bln Loan Fraud

Presidency Confirms Appointment Of Rotimi Pedro As New DG Of NTA, Three Executive Directors

Trending

Appeal Court Orders Kogi To Pay Ex-Deputy Governor, Simon Achuba,  N1.07bln Salary Arrears
Judiciary

Appeal Court Orders Kogi To Pay Ex-Deputy Governor, Simon Achuba, N1.07bln Salary Arrears

by Vital News
August 22, 2025
0

The Court of Appeal sitting in Abuja has again ordered the Kogi State government to pay Simon...

First Lady’s Delegation Pays Condolence Visit to Governor Ododo Over Father’s Passing

First Lady’s Delegation Pays Condolence Visit to Governor Ododo Over Father’s Passing

August 22, 2025
KB Klub Holds Largest Blood Donation Drive, Raises 500pints Of Blood In Lagos

KB Klub Holds Largest Blood Donation Drive, Raises 500pints Of Blood In Lagos

August 22, 2025
President Tinubu Jets Out On State Visit To Saint Lucia, Brazil

Don’t Stay Away From Home, President Tinubu Tell Nigerians In Japan, Says Nigeria On The Rise Again

August 21, 2025
Work Ongoing To Re-Erect Three Towers Along Kainji-Birnin Kebbi Transmission Line – TCN

Abia Secures $750mln World Bank Support For Renewable Energy

August 21, 2025
ADVERTISEMENT
Vital News

Vital News is an online newspaper with a mission to uphold professional journalism by reporting and publishing only facts and figures-based news reports across Nigeria and beyond.

Recent News

  • Appeal Court Orders Kogi To Pay Ex-Deputy Governor, Simon Achuba, N1.07bln Salary Arrears August 22, 2025
  • First Lady’s Delegation Pays Condolence Visit to Governor Ododo Over Father’s Passing August 22, 2025
  • KB Klub Holds Largest Blood Donation Drive, Raises 500pints Of Blood In Lagos August 22, 2025

Categories

  • Agriculture/ Water/ Mineral
  • Aviation
  • Business
  • Crime
  • Culture
  • Economy
  • Education
  • Entertainment
  • Environment
  • Football
  • Foreign
  • Gender
  • Health
  • Judiciary
  • Labour
  • National
  • News
  • Oil & Gas
  • Opinion
  • Opinion
  • Politics
  • Power
  • Religion
  • Security
  • Sports
  • Transport
  • Uncategorized

© 2022 Vital News - . All Rights Reserved.

No Result
View All Result
  • Frontpage
  • Business
  • Economy
  • Politics
  • National
  • Opinion
  • Sports
  • More
    • Crime
    • Judiciary
    • Security

© 2022 Vital News - Vital News by Vital News.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In