Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, has accused International Oil Companies (IOCs) in Nigeria of deliberately frustrating the new Dangote Oil Refinery and Petrochemicals. Edwin claims that the IOCs are hiking the cost of local crude above market prices, forcing the refinery to import crude from countries like the United States, significantly increasing operational costs.
Speaking at a training program organized by the Dangote Group, Edwin also criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority for issuing licenses to import dirty refined products. He emphasized that despite the government issuing 25 refinery construction licenses, only the Dangote Group has fulfilled its promise. Edwin highlighted that over 3.5 billion liters of diesel and aviation fuel have been exported to Europe, accounting for 90% of the refinery's production.
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Edwin further explained that the Nigerian Upstream Petroleum Regulatory Commission is trying to allocate crude oil for the refinery, but the IOCs are intentionally making local crude procurement difficult. He accused them of charging a premium or claiming unavailability of crude, which has led to reduced output and reliance on expensive imports. Edwin stressed that this strategy ensures Nigeria remains dependent on imported refined products, benefiting the IOCs’ home countries.
Additionally, Edwin raised concerns about the health and economic impacts of importing high-sulfur diesel into Nigeria. He noted that countries like Belgium and the Netherlands have banned the export of such fuels to West Africa. Edwin called on the Nigerian government and regulators to support local production, protect the economy, and implement the Petroleum Industry Act to safeguard the nation's interests.
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