The President and Chief Executive Officer of Dangote Industries Limited, Alhaji Aliko Dangote, has disclosed that the Dangote Refinery will roll out its Premium Motor Spirit, also known as petrol, in August after resolving lingering crude oil supply issues through the help of the Nigerian National Petroleum Company Limited (NNPCL), and the Federal Government.
The delay in the roll out of petrol by the refinery on its earlier scheduled date of July, according to Alhaji Dangote while addressing media executives during a tour of the Dangote Petroleum Refinery and Petrochemicals factory in Lagos on Sunday, was as a result of challenges in crude supply which affected the supply of petrol from the refinery.
According Dangote, the crisis over supply of crude from the International Oil Cooperations (IOCs) has now been resolved following the intervention of the NNPCL and the Nigerian government.
“We plan to list the refinery and petrochemical before the end of the first quarter of next year. The issue of crude has been settled last week. But we hope that the IOCs will respect it,” he stated.
“The Federal Government have only 7.2 per cent because it failed to pay for the balance for the 20 per cent stake The IOCs are deliberately and willfully frustrating our efforts to buy the local crude.
“It seems that the IOCs’ objective is to ensure that our petroleum refinery fails. It is either they are deliberately asking for a ridiculous and humongous premium or they simply state that crude is not available.
“We plan to list the refinery and petrochemical before the end of the first quarter of next year, ” he stated.
He noted that the issue the refinery was having with international oil companies regarding the supply of crude was resolved last week.
“The issue of crude has been settled last week. But we hope that the IOCs will respect it, ” he added.
Dangote also expressed hope that the authorities and stakeholders will abide by the provisions of the Petroleum Industry Act, PIA.
Home
According to Dangote, the refinery commenced full operations in 2024, starting with the refining of intermediate products such as polypropylene, naphtha, RCO, gasoline, diesel, and jet fuel.
He noted that the refinery steady state production phase commenced in March 2024 while also expecting the ramping up production to reach 500,000 barrels per day with 15 crude cargoes a month by next August, 550,000bpd by the end of the year, and 650,000bpd by the first quarter of 2025.
Devakumar Edwin, the Vice President of Oil and Gas at Dangote Industries Limited, had last week accused international oil companies in the country of plotting to frustrate the survival of the new Dangote refinery.
Edwin, in a statement, said the IOCs were deliberately and willfully frustrating the refinery’s efforts to buy local crude by hiking the cost above the market price by $6, thereby forcing the refinery to import crude from countries as far as the US, with its attendant high costs.
“The IOCs are deliberately and willfully frustrating our efforts to buy the local crude.
“It seems that the IOCs’ objective is to ensure that our petroleum refinery fails. It is either they are deliberately asking for a ridiculous and humongous premium or they simply state that crude is not available.
“At some point, we paid $6 over and above the market price. This has forced us to reduce our output as well as import crude from countries as far as the US, increasing our cost of production.
“It appears that the objective of the IOCs is to ensure that Nigeria remains a country, which exports crude oil and imports refined petroleum products. They are keen on exporting the raw materials to their home countries, creating employment and wealth for their countries, adding to their Gross Domestic Product (GDP), and dumping the expensive refined products into Nigeria, thus making us dependent on imported products.”