The Management of Dangote Industries Limited has again accused International Oil Companies (IOCs) of frustrating its refinery operations.
According to a statement on Wednesday, the company said IOCs insisted on selling crude oil to its refinery through their foreign agents.
It argued that the local price of crude would continue to increase because the trading arms offer cargoes at $2 to $4 per barrel, above NUPRC official price.
“When cargoes are offered to the oil company by the trading arms, it is sometimes at a $2-$4 (per barrel) premium above the official price set by NUPRC,” the Vice President of Oil & Gas, Dangote Industries Limited, Mr DVG Edwin, said.
He commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its various interventions in the oil company’s crude supply requests from IOCs, and for publishing the Domestic Crude Supply.
The company alleged that the foreign oil producers seemed to be prioritising Asian countries in selling the crude they produced in Nigeria, saying the local price of crude would continue to increase because the trading arms offer cargoes at $2 to $4 per barrel, above NUPRC official price.
“As an example, we paid $96.23 per barrel for a cargo of Bonga crude grade in April (excluding transport). The price consisted of $90.15 dated Brent price + $5.08 NNPC premium (NSP) + $1 trader premium.
“In the same month, we were able to buy WTI at a dated Brent price of $90.15 + $0.93 trader premium including transport.
“When NNPC subsequently lowered its premium based on market feedback that it was too high, some traders then started asking us for a premium of up to $4m over and above the NSP for a cargo of Bonny Light.
“Data on platforms like Platts and Argus shows that the price offered to us is way higher than the market prices tracked by these platforms,” the statement read.
