The Crude Oil Refineries Association of Nigeria (CORAN) has raised its voice in support of Dangote Oil Refinery and Petrochemicals Limited over allegations that local crude producers including the international oil corporations (IOCs) continue to sabotage the refinery’s operations by refusing to guarantee and provide crude supply.
Echoing Dangote Refinery concerns published ireported across national newspapers, the chairman of CORAN Engr. Momoh Jimah Oyarekhua, speaking on Channels Television Business Morning Show said that Dangote Refineries, as a member of CORAN, has expressed the views of many other members who experienced the trying operational issues stemming from the difficulties of obtaining crude oil locally for the operations of several refineries in the country.
On the question of why the IOCs have frustrated the supply of crude to refineries, Oyarekhua said “I will take it from the angle of producers of crude rather than focusing on the IOCs alone. What we usually call IOCS are the international producers, but I do not think it is just about the international producers and operators in Nigeria, I think it’s more about the producers of crude in Nigeria that are perhaps frustrating the refineries in Nigeria from getting crude. We have been on this journey; I particularly have been on this journey of advocating for crude sales to local refineries and also where necessary for the modular refineries for crude to be sold to them in naira because most of our products are produced in the local market and income is actually in Naira and it is just commonsensical that if you sell product in naira you should be able to get your feedstock in naira, mostly when that feedstock is produced in naira so that you don’t put pressure on the US dollar that is already scarce in the country. We have had several engagements with the NUPRC and all of that and in the PIA Law, in section 109, there is DCSO which is supposed to be a Domestic Crude Supply Obligation to support the local refineries and I think that law was specifically put there by legislators not to starve the refineries. But what we have seen is a huge and still resistance by the producers of crude in Nigeria. They would prefer to export crude abroad than to sell it to local refineries. We all saw that when Dangote came on stream, diesel dropped from NGN1’600 to about NGN1’200, and as we speak today, from our refineries, we are even selling less than NGN1’100. This is to tell you how far producing crude locally can support the economy and can support the people of Nigeria”
