Dangote Refinery Accuses Int’l Oil Companies Of Price Manipulation

Devakumar Edwin, the Vice President of Oil and Gas at Dangote Industries Limited (DIL), has accused International Oil Companies (IOCs) in Nigeria of price manipulation in an attempt to undermine local oil refining.

Edwin disclosed this during a one-day training session conducted by the Dangote Group for a group of energy editors.

The IOCs are intentionally obstructing the refinery’s efforts to purchase local crude by inflating premium prices above market rates,” he stated.

Due to the IOCs’ failure to meet local oil demand, Edwin said, the refinery has been forced to reduce its output and import crude from countries such as the US, leading to increased production costs. This violates the Petroleum Industry Act (PIA), which mandates IOCs to sell crude oil to local refineries in Nigeria before exportation.

In a recent interview with CNN, the chairman and president of Dangote Refinery, Aliko Dangote, also said the IOCs are not complying with the PIA mandates.

Despite the price manipulation hurdle and multiple delays, Dangote Refinery has reportedly started exporting jet fuel to Europe.

With the local difficulties of obtaining crude oil from the international oil companies in Nigeria, the jury remains out on how the refinery will meet its 550,000 litres barrel per day installed capacity.

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