According to a statement from the oil ministry, Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), has called a high-level conference with important players in the oil industry to address concerns over the Dangote Refinery.
The meeting, held on Monday in Abuja, had Aliko Dangote, Chairman/CEO of Dangote Group, and Farouk Ahmed, the Nigerian Midstream and Downstream Petroleum Regulatory Authority CEO (NMDPRA), in attendance. Others were Gbenga Komolafe, Nigerian Upstream Petroleum Regulatory Commission chief executive and Mele Kyari, GCEO of the Nigerian National Petroleum Company Limited.
The leadership of the Dangote Group, NMDPRA, and NNPCL recently disagreed on important issues in the business. Dangote had stated that the NNPCL no longer holds a 20% ownership in its refinery, emphasizing that the Nigerian oil giant now owns only 7.2% of the refinery due to its failure to pay the balance of its shares, which were due in June.
However, the NNPCL stated that the decision to cap its equity involvement at the paid-up price was made and notified to Dangote Refinery several months ago.
Additionally, the NMDPRA and Dangote were at odds over license-related matters. According to the NMDPRA, the Dangote refinery was only in the pre-commissioning stage, and its diesel fell short of international requirements.
But Dangote denied the NMDPRA’s assertion.
In addition, Dangote claimed that the International Oil Companies were impeding its refinery operations by selling crude oil to it through their overseas trading subsidiaries, offering cargoes at prices that were higher than the NUPRC’s official pricing by two to four dollars per barrel.
In light of this, the minister called the meeting and asked all parties to commit to proactive and cooperative problem-solving in order to find a long-term solution to the current standoff hurting the Dangote refinery.
Mr. Lokpobiri emphasized the value of collaboration and coordination between all parties involved. He stated that doing this will guarantee the oil and gas industry’s prosperity and peak performance, which he characterized as essential to Nigeria’s economic development and energy security.
The concerned parties conveyed their appreciation to the clergyman for his outstanding guidance and prompt involvement in fostering communication. The meeting demonstrated the minister’s commitment to creating an atmosphere that is favorable for Nigeria’s oil and gas industry and was a major step toward resolving the issues.
The $20 billion Dangote Refinery, which would ensure that Nigeria is not dependent on foreign petroleum, is expected to come online in 2023 and have a refining capacity of 650,000 barrels per day (bpd). This development is expected to stimulate the oil sector in Nigeria.
