Dangote refinery reports IOCs selling Nigerian crude through third parties, increasing costs
Dangote Petroleum Refinery and Petrochemicals stated that International Oil Companies IOCs in Nigeria are selling crude intended for domestic refining through third parties. This practice, according to Dangote, leads to additional costs, making Nigerian crude less competitive. The refinery clarified reports from the Nigerian Upstream Petroleum Regulatory Commission NUPRC regarding its alleged rejection of 15.5 million barrels of crude in the second quarter of 2026. Devakumar Edwin, Group Vice President, Oil & Gas and Fertiliser, Dangote Industries Limited, explained that while the refinery is committed to sourcing Nigerian crude and supporting the Domestic Crude Supply Obligation DCSO framework, it faces challenges in securing crude directly from domestic producers. Consequently, a significant portion of crude under the DCSO has been sourced through IOCs and third parties, rather than directly from Nigerian upstream producers. Edwin noted that using IOCs and third parties often results in additional premiums and transaction costs, making Nigerian crude more expensive than international alternatives. He emphasized that the refinery's concern is the genuine availability of crude at commercially viable prices, stating that additional costs from intermediaries ultimately increase the price of refined petroleum products in the domestic market. This clarification follows fresh NUPRC data indicating a sharp rise in domestic crude supplies to local refineries, with 53.7 million barre
