Petroleum minister hosts essential assembly with Dangote, NNPC, others

Nigeria’s Minister for State, Petroleum Assets (Oil), Heineken Lokpobiri, on Monday convened a high-level assembly with prime executives from Dangote Group, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Upstream Petroleum Regulatory Fee (NUPRC), and the Nigerian Nationwide Petroleum Firm Restricted (NNPC Ltd) to handle the continued points surrounding the Dangote Refinery.

Nneamaka Okafor, the particular adviser on media and communication to the minister, disclosed this in an announcement on Monday.

Current on the assembly have been Aliko Dangote, Chairman and Chief Govt Officer (CEO) of Dangote Group; Farouk Ahmed, chief government of the NMDPRA; Gbenga Komolafe, chief government officer of the NUPRC and Mele Kyari, NNPC’s group chief government officer.

Ms Okafor mentioned the stakeholders expressed their gratitude to the minister for his exemplary management and well timed intervention in facilitating the essential dialogue.

The assertion famous that the assembly centered on discovering a sustainable and lasting resolution to the present deadlock affecting the Dangote refinery, with all events demonstrating a dedication to collaborative and proactive problem-solving.

Based on the assertion, the minister emphasised the significance of cooperation and synergy amongst all stakeholders to make sure the success and optimum efficiency of the oil and fuel sector, which is pivotal for Nigeria’s financial progress and power safety.

“This assembly marks a big step in the direction of resolving the challenges and underscores the minister’s dedication to fostering a conducive atmosphere for Nigeria’s oil and fuel sector,” the assertion mentioned.

Background

Final month, the Vice President, Oil and Gasoline at Dangote Industries Restricted (DIL), Devakumar Edwin, accused Worldwide Oil Corporations (IOCs) in Nigeria of doing every little thing to frustrate the survival of Dangote Oil Refinery and Petrochemicals.

He mentioned the IOCs are intentionally irritating the refinery’s efforts to purchase native crude by jerking up the excessive premium worth above the market worth, thereby forcing it to import crude from nations so far as the US, with its attendant excessive prices.

Chatting with a gaggle of power editors at a one-day coaching programme organised by the Dangote Group on the time, Mr Edwin additionally lamented the exercise of the NMDPRA in granting licences indiscriminately to entrepreneurs to import soiled refined merchandise into the nation.

Responding to the declare on the time, the NMDPRA mentioned there isn’t a soiled gasoline being imported into the nation, noting that it takes critically its statutory mandate to make sure that solely high quality petroleum merchandise are provided and consumed in Nigeria.

The NMDPRA defined that the Financial Group of West African States (ECOWAS) heads of state in 2020 endorsed a declaration adopting the Afri-5 gasoline roadmap that requires that sure merchandise have a minimal 50 elements per million (ppm) litres of sulphur.

Final Wednesday, Mr Edwin insisted that IOCs working in Nigeria have constantly annoyed the corporate’s requests for domestically produced crude as feedstock for its refining course of.

Mr Edwin’s response got here towards the background of an announcement by the chief government officer of the NUPRC, Gbenga Komolafe.

Mr Komolafe had, in an interview on ARISE Information TV, mentioned that “it’s ‘inaccurate’ for one to say that the IOCs are refusing to make crude oil obtainable to home refiners, because the Petroleum Trade Act (PIA) has a stipulation that requires a keen purchaser, keen vendor relationship.”

Mr Edwin acknowledged that IOCs want to promote crude to worldwide buying and selling arms, who then promote it at a margin.

He highlighted that when cargoes are provided to the oil firm by the buying and selling arms, it’s typically at a $2-$4 (per barrel) premium above the official worth set by NUPRC.

The NMDPRA Chief Govt, Farouk Ahmed, whereas talking to the state home correspondents final Thursday, mentioned the refinery remains to be on the pre-commissioning stage and has not but been licenced.

Mr Ahmed mentioned the allegations raised by the refinery that its operations are being scuttled owing to an absence of provide of crude oil by IOCs are unfaithful, noting that Mr Dangote is requesting that the regulatory droop or cease all importation of petroleum merchandise, particularly automotive fuel oil (AGO) or jet kero and direct all entrepreneurs to the refinery.

The Home of Representatives had resolved to arrange an advert hoc committee to examine the alleged conspiracy by IOCs towards the refinery.

The decision follows a movement of pressing public significance moved by the Minority Chief, Kingsley Chinda, (PDP, Rivers) final Thursday.

Within the movement, Mr Chinda mentioned the alleged conspiracy undermines the refinery’s efficiency from full optimisation.

“The alleged conspiracy towards Dangote refinery pertains to efforts by the IOCs to intentionally frustrate the refinery’s means to purchase native crude oil by manipulating and growing the premium worth above the market worth,” he mentioned.

Mr Chinda added that “while the IOCs are eager on exporting uncooked supplies to their residence nations and thus creating wealth and employment for his or her nations, thereby including to their GDP, Nigeria continues to be a dumping floor for refined merchandise, thus making us depending on imported petroleum merchandise.”

Consequently, the Home urged the federal authorities, the NUPRC, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and well-meaning Nigerians to help Dangote Refinery to succeed.

Following the disaster, Mr Dangote introduced plans to halt funding in Nigeria’s metal trade, including that his firm’s board determined towards the metal funding to keep away from the accusations of being thought-about monopolistic.

The refinery

The 650,000 barrels per day Dangote Petroleum Refinery commenced manufacturing of diesel and aviation gasoline in January.

Saying the graduation of manufacturing, the corporate mentioned the refinery had obtained six million barrels of crude oil at its two SPMs 25 kilometres from the shore.

The primary crude supply was finished on 12 December 2023, and the sixth cargo was delivered on 8 January.

The corporate made an extra transfer in the direction of the graduation of the manufacturing of refined petroleum merchandise with the receipt of a further a million barrels of bonny mild crude provided by the Nigeria Nationwide Petroleum Firm Restricted (NNPC Ltd).

In April, the corporate commenced supplying petroleum merchandise to the native market.

Final month, Mr Dangote mentioned that Premium Motor Spirit (PMS), popularly referred to as petrol, refined on the refinery, will hit the market by July.

NNPC Restricted had earlier introduced plans to amass a 20 per cent stake within the refinery.

Nonetheless, final Sunday, Mr Dangote mentioned NNPC Ltd now owns solely 7.2 per cent stake within the refinery because of its failure to pay the stability of its share, which was due in June.

“The settlement was really 20 per cent, which we had with NNPC, and they didn’t pay the stability of the cash up until final 12 months, after which we gave them one other extension up until June (2024), and so they mentioned that they’d stay the place they’ve already paid which is 7.2 per cent. So NNPC, the federal government, owns solely 7.2 per cent, not 20 per cent,” Mr Dangote mentioned, in response to studies.

Confirming the event in an announcement, the NNPC Ltd mentioned its interval evaluation of the funding portfolio led to the decline in its share of the refinery.

On Sunday, Mr Dangote informed PREMIUM TIMES in an unique interview that he’s keen to surrender possession of the refinery to the state-owned power firm, NNPC Restricted.