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Dangote Accuses IOCs Of Crude Oil Price Manipulation - Business - Nairaland

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Dangote Accuses IOCs Of Crude Oil Price Manipulation by lwisee: 7:06pm On Jun 23
…Indicts NMDPRA over importation of dirty diesel, jet fuel

Vice President, Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, has accused the International Oil Companies (IOCs) in Nigeria of plotting to cripple its operations.

Edwin said the IOCs are deliberately frustrating the refinery’s efforts to buy local crude by jerking up the high premium price above the market price, thereby forcing it to import crude from countries as far as the United States, with its attendant high costs.

Edwin, who disclosed this at a one-day training programme, for journalists in Lagos also blamed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), for granting licenses to marketers to import dirty refined products into the country.

He said: “The Federal Government issued 25 licences to build refineries and we are the only one that delivered on promise. In effect, we deserve every support from the Government. It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 per cent of our production, have been exported. We are calling on the Federal Government and regulators to give us the necessary support to create jobs and prosperity for the nation.”

According to him, “While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is trying their best to allocate the crude for us, the IOCs are deliberately and willfully frustrating our efforts to buy the local crude. It would be recalled that the NUPRC, recently met with crude oil producers as well as refineries owners in Nigeria, in a bid to ensure full adherence to Domestic Crude Oil Supply Obligations (DCSO), as enunciated under section 109(2) of the Petroleum Industry Act (PIA).

“It seems that the IOCs’ objective is to ensure that our Petroleum Refinery fails. It is either they are deliberately asking for ridiculous/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 (IOCs) are keen on exporting the raw materials to their home countries, creating employment and wealth for their countries, adding to their GDP, and dumping the expensive refined products into Nigeria – thus making us to be dependent on imported products.

“It is the same strategy the multinationals have been adopting in every commodity, making Nigeria and Sub-Saharan Africa to be facing unemployment and poverty, while they create wealth for themselves at our expense. This is exploitation – pure and simple. Unfortunately, the country is also playing into their hands by continuing to issue import licences, at the expense of our economy and at the cost of the health of the Nigerians who are exposed to carcinogenic products.

“Even though we are producing and bringing out diesel into the market, complying with ECOWAS regulations and standards, licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian Market.

“Since the US, EU and UK imposed a Price Cap Scheme from 5th February 2023 on Russian Petroleum Products, a large number of vessels are waiting near Togo with Russian ultra-high sulphur diesel and, they are being purchased and dumped into the Nigerian Market.

“Some of the European countries were so alarmed about the carcinogenic effect of the extra high sulphur diesel being dumped into the Nigerian Market that countries like Belgium and the Netherlands imposed a ban on such fuel being exported from its country, into West Africa, recently. Sadly, the country is giving import licences for such dirty diesel to be imported into Nigeria, when we have more than adequate petroleum refining capacity locally.”

It would be recalled that in May, Belgium and Netherlands adopted new quality standards to halt the export of cheap, low-quality fuels to West Africa, harmonising its standards with those of the European Union.

These measures synchronise fuel export standards with the European domestic market, specifically targeting diesel and petrol with high sulphur and chemical content. Historically, these fuels, with sulphur content reaching up to 10,000 ppm, were exported at reduced rates to countries like Nigeria and other West African consumers.


Belgium’s Minister of Environment, Zakia Khattabi, announced that his country followed the Netherlands, which in April 2023 also prohibited the export of low-quality petrol and diesel to West Africa via the ports of Amsterdam and Rotterdam.

Khattabi emphasised that the Netherlands’ decision to restrict dirty fuel exports had redirected the trade to Belgium, now used by oil producers and traders to export gasoline with excessively high levels of benzene and sulphur.

“For far too long, toxic fuels have been departing from Belgium to destinations including Africa. They cause extremely poor air quality in countries such as Ghana, Nigeria, and Cameroon and are even carcinogenic,” said Khattabi.

In September 2017, an investigation by an international organisation, Public Eye revealed that polluted and toxic fuels were being exported on a large scale from the ports of Rotterdam and Amsterdam for export to African markets. As much as a quarter of the petrol and diesel available in West Africa originates from the ports of Amsterdam, Rotterdam, and Antwerp.

These fuels contain sulphur and other pollutants, such as cancer-causing benzene, in quantities up to 400 times the limits permitted in Europe. The Netherlands and Belgium were enjoined to enforce regulations to shield millions of Africans from exposure to toxic fuels.

The decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to grant licenses indiscriminately for the importation of dirty diesel and aviation fuel has made the Dangote refinery to expand into foreign markets.

The refinery has recently exported diesel and aviation fuel to Europe and other parts of the world. The same industry players fought us for crashing the price of diesel and aviation fuel, but our aim, as I have said earlier, is to grow our economy.

He noted that because the refinery meets the international standard as well as complies with stringent guidelines and regulations to protect the local environment, it has been able to export its products to Europe and other parts of the world.

While appealing to the Federal Government and the National Assembly to urgently intervene for speedy implementation of the PIA and to ensure the interests of Nigeria and Nigerians are protected, he said:

“Recently, the government of Ghana, through legislation has banned the importation of highly contaminated diesel and PMS into their county. It is regrettable that, in Nigeria, import licences are granted despite knowing that we can produce nearly double the amount of products needed in Nigeria and even export the surplus. Since January 2021, ECOWAS regulations have prohibited the import of highly contaminated diesel into the region.”

https://www.vanguardngr.com/2024/06/dangote-refinery-accuses-iocs-of-plotting-to-cripple-its-operations/

22 Likes 4 Shares

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by bjdon: 7:20pm On Jun 23
If we were a serious nation firms like Dangote refinery would be designated 'Strategic national enterprise' and be entitled to full govt support across their entire production flow

89 Likes 9 Shares

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by muyico(m): 7:22pm On Jun 23
Now we don knw d source of our prblms

25 Likes 1 Share

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by muyico(m): 7:26pm On Jun 23
Most of our crude oils is been used in paying debt loans!

30 Likes 1 Share

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by stevnwigw1: 7:34pm On Jun 23
The white man is you arc enemy as a back man, know this and k ow peace.

28 Likes 1 Share

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by michlins(m): 7:34pm On Jun 23
bjdon:
If we were a serious nation firms like Dangote refinery would be designated 'Strategic national enterprise' and be entitled to full govt support across their entire production flow
ignorant and sad people will claim it's government monopoly. Forgetting that the biggest companies they love to talk about are subtly supported by the government of their own


USA banned Huawei to protect Apple. Banned tiktok for Facebook and the list goes on and on.

Tell me what Huawei is doing Apple hasn't done or what tiktok is doing Facebook isn't doing worse

35 Likes 2 Shares

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by BigkokoRep: 7:35pm On Jun 23
Dangote don join wailers? When buhari & emefiele were opening our bank vault for him, he didnt talk ohh....

11 Likes 3 Shares

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by lwisee: 8:23pm On Jun 23
This is serious
Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by Faiththatworks(m): 8:30pm On Jun 23
God bless Alhaji Aliko Dangote.
I'm disappointed at those IOCs meaning international oil companies who are sabotaging Alhaji Dangote effort at making Nigeria a self-sufficient nation when it comes to Refining its crude oil.
It's a shame that Alhaji Dangote has to go all the way to the United States to buy crude oil when it's in abundance in his backyard.
My advice to President Asiwaju is very simple,since he's the defacto Minister of Petroleum,he must order NNPCL to give Alhaji Dangote at least 3 oil blocs whenever the Next oil bloc bidding starts.
I don't understand why someone like Mrs Alakija and all the other people who own oil blocs should be allowed to keep making money without any visible impact on the life of the average Nigerian,while someone like Alh Dangote who will help The whole country solve the problem of Importation of Refined petroleum Product shouldn't have an oil Bloc.
To the Nigerian slaves in NMMPRC who are conniving with their international masters to import substandard Diesel and Aviation fuel,I say shame,shame on them.
These are the cabals Alhaji Dangote complained about,I'm sure their days are numbered and they will soon be rooted out of their position.z
Patriotism over Profit,that must be our motto as Nigerians.
God bless Nigeria.

13 Likes

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by Remman(m): 8:40pm On Jun 23
They're playing their last fight... They can't sustain it in the long run!

5 Likes 3 Shares

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by lwisee: 8:44pm On Jun 23
Remman:
They're playing their last fight... They can't sustain it in the long run!

Exactly, they will surely succumb once the government step in with all seriousness

9 Likes

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by givedemwotowoto: 9:06pm On Jun 23
Just go straight to the point. What’s the new date to commence operations for petrol sales?

15 Likes 1 Share

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by Chicagograduate(m): 9:19pm On Jun 23
muyico:
Most of our crude oils is been used in paying debt loans!
Are you in charge of debt management office?

7 Likes

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by NwaNimo1(m): 9:27pm On Jun 23
Corruption fighting Corruption.....

10 Likes

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by IMASTEX: 9:27pm On Jun 23
He earlier mentioned about cartel in oil industry fighting him from day one. Well, this is where the government should step in.

14 Likes

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by Snake001: 9:27pm On Jun 23
Hehehe

Let’s wait for what the fake messiah and his fellow cannibals will have to say on this.

3 Likes

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by sanpipita(m): 9:28pm On Jun 23
Dangote is just making excuses, his refinery has never been ready but he tries pretend that he means well for Nigeria

10 Likes 2 Shares

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by Rich4god(m): 9:28pm On Jun 23
Can't NNPC ensure steady and cheap supply of crude to dangote.

Almost a year after inauguration, we never see refined petrol.

1 Like

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by EdiskyHarry: 9:28pm On Jun 23
Ok
Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by DMerciful(m): 9:28pm On Jun 23
Lets see the comments of those people that told Allen Onyema to keep quiet and compete say about Dangote's complain now grin

12 Likes 1 Share

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by Smartcitizen: 9:28pm On Jun 23
Hmmm!

From Air peace and now Dangote, something is not really right with Nigeria.

5 Likes

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by vibemad007: 9:30pm On Jun 23
BigkokoRep:
Dangote don join wailers? When buhari & emefiele were opening our bank vault for him, he didnt talk ohh....

Shouldn't u be entitled to sense.


Am Just asking

9 Likes 1 Share

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by fredoooooo: 9:30pm On Jun 23
Here we go again...

3 Likes

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by tobenuel(m): 9:30pm On Jun 23
Cabals at work

Allen Onyema also faced same issues

5 Likes

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by HenryThegreat1(m): 9:30pm On Jun 23
It's obvious, Tinubu’s administration is frustrating Dangote Refinery.

2 Likes 1 Share

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by DMerciful(m): 9:30pm On Jun 23
Who sold blacks as slave to whites? Blacks.

Blacks are the biggest enemies of blacks
stevnwigw1:
The white man is you arc enemy as a back man, know this and k ow peace.

7 Likes

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by Basicend: 9:31pm On Jun 23
This country self, too many evil cabala trying to choke out themselves.

No love anywhere.

Well, Dangote too actually choked out funds strategically to arrive at his height today.

2 Likes

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by leisuretym: 9:31pm On Jun 23
Government should do everything for this refinery to succeed

1 Like

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by mbahdi(m): 9:32pm On Jun 23
Una all dey mad
Both dangote iocs and fg...una dey craze
Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by Kingray10: 9:32pm On Jun 23
Foreigners in name of IOC, crippling Nigeria economy and the govt is silent about it.
Hmmmm make I no talk

3 Likes

Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by travelzcruix: 9:32pm On Jun 23
Can someone who is enlightened in this field explain it to lay men, me no understand shi
Re: Dangote Accuses IOCs Of Crude Oil Price Manipulation by Harddiskng(m): 9:32pm On Jun 23
Enemies of Nigeria are in Nigeria. When you unmask the people behind this, I can bet you that they are Nigerians.

Even Dangote himself, puts his own interest first over Nigeria.

11 Likes 1 Share

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