Dangote Refinery is a significant investment in Nigeria’s energy sector, and its success is crucial to the country’s economic growth. The refinery’s failure would not only affect the economy but also lead to a loss of jobs and revenue for the government.
The alleged sabotage of the Dangote Refinery by IOCs poses a significant threat to Nigeria’s energy security. The refinery, which is expected to produce 650,000 barrels of crude oil per day, is critical to Nigeria’s energy self-sufficiency. Edwin warned that the IOCs’ actions could lead to a shortage of petroleum products in the country, exacerbating the already dire energy crisis.
IOCs’ Sabotage of Dangote Refinery: A Threat to Nigeria’s Energy Security
Devakumar Edwin, the Vice President of Oil and Gas at Dangote Industries Limited (DIL), has alleged that International Oil Companies (IOCs) operating in Nigeria are making deliberate efforts to sabotage the progress of the Dangote Oil Refinery and Petrochemicals project. Edwin shared this information with a gathering of Energy Editors during a one-day workshop arranged by the Dangote Group.
Edwin noted that the IOCs are deliberately hindering the refinery’s attempts to buy local crude by charging inflated premium prices higher than the market rates. This situation is forcing the refinery to import crude from faraway countries such as the United States, resulting in much higher expenses.
NUPRC’s Efforts to Ensure Domestic Crude Oil Supply Obligations
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been working to ensure that crude oil producers meet their Domestic Crude Oil Supply Obligations (DCSO). The NUPRC recently met with crude oil producers and refinery owners to ensure full adherence to the DCSO, as enunciated under section 109(2) of the Petroleum Industry Act (PIA).
Despite the NUPRC’s efforts, the IOCs are still frustrating the Dangote Refinery’s efforts to buy local crude. Edwin alleged that the IOCs are deliberately asking for ridiculous premiums or claiming that crude is not available, forcing the refinery to import crude from other countries.
Dangote Refinery’s Struggle to Access Local Crude
The Dangote Refinery is struggling to access local crude oil due to the IOCs’ sabotage. Edwin revealed that the refinery has been forced to reduce its output and import crude from countries as far as the United States, increasing its cost of production. This situation is not only affecting the refinery’s operations but also threatening its viability.
The refinery’s inability to access local crude is also affecting the country’s economy, as it is forced to spend more on importing crude oil. This situation highlights the need for the government to take decisive action against the IOCs and ensure that the Dangote Refinery has access to local crude.
IOCs’ Motives: Ensuring the Failure of Dangote Refinery
Edwin alleged that the IOCs’ objective is to ensure that the Dangote Refinery fails. He stated that the IOCs are deliberately frustrating the refinery’s efforts to buy local crude, forcing it to import crude from other countries. This situation is not only affecting the refinery’s operations but also threatening its viability.
The IOCs’ motives are suspect, and their actions are seen as a deliberate attempt to sabotage the Dangote Refinery. The government must take action to ensure that the refinery has access to local crude and that the IOCs are held accountable for their actions.
Government’s Response to the Crisis
The government must take decisive action to address the crisis facing the Dangote Refinery. The Ministry of Petroleum Resources and the NUPRC must ensure that the IOCs comply with the DCSO and provide the refinery with access to local crude. The government must also take action to prevent the IOCs from sabotaging the refinery’s operations.
The government’s response to the crisis will determine the fate of the Dangote Refinery and the country’s energy security. The government must act swiftly to address the situation and ensure that the refinery has access to local crude.
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