Dangote Refineries, a subsidiary of the Dangote Group, says it has initiated discussions with Libya to secure crude oil for refining. The company hopes by this move to further diversify its refining crude oil sources and make it less dependent on Nigeria’s domestic crude supplies.
Mr Devakumar Edwin, the current Vice President of Dangote Group, stated this. He also revealed plans to get crude oil from Angola.
In one of his statements on Sunday, Edwin claimed, “We are talking to Libya about importing crude, and we will talk to Angola as well and some other countries in Africa.“
He declined to provide more details about the crude oil procurement discussion but hinted at some of the refinery’s current regulatory challenges.
Nigeria’s oil producing giant – NNPC – has not met the agreed quota of supply of crude to the refinery, leading to the group’s drastic measures—such as importing from the United States and Brazil to meet expected demand.
Despite these challenges, the Dangote refinery, one of the largest in the world, has shown resilience in the face of recent emerging political economy pressures from the Nigerian establishment.
Lately, the refinery has been embroiled in a local dispute with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The chairman of NMDPRA, Mr Farouk Ahmed, accused the refinery, along with other local refineries, of having high sulfur contents, as high as 650 parts per million (ppm). At this level, the use of products from the refinery would contribute to worsening climate change and the destruction of the ecosystem.
However, Dangote Refinery refutes these allegations and claims it produces the best quality refined oil, which is appreciated even in other markets.
However, there are opinions concerned with the potential monopolization and domination of the refining industry in Nigeria by Dangote, given its humongous refining capacity. But the President of Dangote Group, Aliko Dangote retorts that he only invested in the sector out of patriotism and was willing to divest his interest in the refinery to NNPC to run the business if they so desired.
Comment, Like 👍, share this article, and Follow us on our social media handles.
WhatsApp Channel
Telegram Channel
