The Dangote Group has disproved a media report, which claimed that its oil refining arm, Dangote Refinery, is reselling crude sourced from the United States and Nigeria, where the 650,000 barrels-per-day (bpd) is based.
Reuters reported Friday it spoke to four trade sources, who disclosed that the Lagos-based refinery is offering the crude to buyers following technical constraints at the plant.
The news outlet also stated that an unnamed Dangote executive refuted the market news that the refinery is facing operational challenges from a defective crude distillation unit (CDU).
In its response to a query from PREMIUM TIMES Friday night, Dangote Industries Limited remarked that the Reuters report is “misleading” and should be disregarded.
This is outright falsehood as we are not authorised to sell any crude we buy from Nigeria! Also, our CDU is working and in perfect condition,” said Anthony Chiejina, the group’s chief spokesperson.
We advise that you ignore these false narratives being peddled by those bent on the importation of dirty fuels into the country,” he added.
Reuters named Nigerian oil grades – Forcados and Escravos – among those Dangote Refinery wants buyers for. The US West Texas Intermediate Midland crude is also included, the news outlet said, citing a source.
Limited supplies from trade partners like the state oil company NNPC Limited, from which the refinery has had only five cargoes delivered since the start of operations in January, compared to the fifteen it anticipated, has made it turn to places like the US and Brazil to obtain the feedstock it needs to keep running.
It is turning to smaller African producers like Libya and Angola to bail it out from supply troubles at home.
The mega plant aims to end Nigeria’s reliance on fuel imports and export the rest of its output to foreign markets.
It plans to buck up production to 550,000 bpd or 85 per cent of its nameplate capacity this year.
When it begins operating at full capacity, the refinery will be the biggest in both Africa and Europe. This will generate $26 billion in revenue yearly, according to a company document seen by PREMIUM TIMES.
Credit to PREMIUM TIMES