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Dangote refinery insists international oil companies are frustrating its crude supply demands
Nasiru Yusuf Ibrahim
The Management of Dangote Industries Limited (DIL) has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its various interventions in the oil company’s crude supply requests from International Oil Companies (IOCs), and for publishing the Domestic Crude Supply Obligation (DCSO) guidelines to enshrine transparency in the oil industry.
KANO FOCUS reports that the Vice President, of Oil & Gas, Dangote Industries Limited, Mr. DVG Edwin however said: “If the Domestic Crude Supply Obligation (DCSO) guidelines are diligently implemented, this will ensure that we deal directly with the companies producing the crude oil in Nigeria as stipulated by the PIA.”
Edwin insisted that IOCs operating in Nigeria have consistently frustrated the company’s requests for locally produced crude as feedstock for its refining process.
He highlighted that 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. “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. We recently had to escalate this to NUPRC”, Edwin said and urged the regulatory commission to take a second look at the issue of pricing.
Edwin’s response came against the background of a statement by the Chief Executive Officer of NUPRC, Engr. Gbenga Komolafe, in an interview on ARISE News TV said that “it is ‘erroneous’ for one to say that the International Oil Companies (IOCs) are refusing to make crude oil available to domestic refiners, as the Petroleum Industry Act (PIA) has a stipulation that calls for a willing buyer-willing seller relationship.”
Edwin noted that “The NUPRC has been very supportive to the Dangote Refinery as they have intervened several times to help us secure crude supply. However, the NUPRC Chief Executive was probably misquoted by some people hence his statement that IOCs did not refuse to sell to us. To set the records straight, we would like to recap the facts below.
“Aside from Nigerian National Petroleum Corporation Limited (NNPCL), to date, we have only purchased crude directly from one other local producer (Sapetro). All other producers refer us to their international trading arms.
“These international trading arms are non-value adding middlemen who sit abroad and earn margin from crude being produced and consumed in Nigeria. They are not bound by Nigerian laws and do not pay tax in Nigeria on the unjustifiable margin they earn.
“The trading arm of one of the IOCs refused to sell to us directly and asked us to find a middleman who would buy from them and then sell to us at a margin. We dialogued with them for 9 months and in the end, we had to escalate to NUPRC who helped resolve the situation,” Edwin stated.
According to him, “When we entered the market to purchase our crude requirement for August, the international trading arms told us that they had entered their Nigerian cargoes into a Pertamina (the Indonesia National Oil Company) tender, and we had to wait for the tender to conclude to see what is still available.
“This is not the first time. In many cases, particular crude grades we wish to buy are sold to Indian or other Asian refiners even before the cargoes are formally allocated in the curtailment meeting chaired by NUPRC.
“However, we would like to urge NUPRC to take a second look at the issue of pricing. NUPRC has severally asserted that transactions should be on a willing seller / willing buyer basis. The challenge however is that market liquidity (many sellers / many buyers in the market at the same time) is a precondition for this. Where a refinery needs a particular crude grade loading at a particular time then there is typically only one participant on either side of the market.
“It is to avoid the problem of price gouging in an illiquid market that the domestic gas supply obligation specifies volume obligation per producer and a formula for transparently determining pricing. The fact that the domestic crude supply obligation as defined in the PIA has gaps is no reason for wisdom not to prevail”, Edwin stated.
Kano State Governor Abba Kabir Yusuf has taken a decisive step to address the prolonged challenges faced by Kano students unable to access their academic certificates throughout Ganduje’s administration.
In a statement issued by the governor’s spokesperson, Sunusi Bature Dawakin Tofa, on Monday, it was revealed that Governor Yusuf held a critical meeting with the management of Near East University in Cyprus to tackle the issue.
The discussion focused on the overdue release of certificates for Kano students who graduated between 2015 and 2019.
Many of these graduates, particularly from fields such as Medicine and Nursing, have been unable to advance in their careers due to the non-payment of tuition fees by the Ganduje led immediat past administration.
The governor described the situation as a major setback, not only for the affected students but also for the state, which has been deprived of skilled professionals in critical sectors particularly the healthcare service.
However, he expressed optimism following what he called fruitful discussions with the university management aimed at settling the liabilities and facilitating the release of the certificates.
“This situation has been a significant setback for our children, hindering their dreams and aspirations, and it has also affected our state, which is in dire need of their expertise,” the governor remarked.
“One cannot imagine that as governor, Ganduje cannot pay for tuition of these medical students who much need for immediate employment with Kano state government, it is a shame on him”
“We remain committed to prioritizing education and the welfare of our people as a foundation for sustainable growth.”
Governor Yusuf’s intervention underscores his administration’s resolve to address systemic challenges in the education sector.
The anticipated resolution of this issue is expected to enable the graduates to fulfill their potential and make meaningful contributions to Kano State’s development.
This effort signals a new chapter of hope for the affected graduates and reaffirms the government’s commitment to building a brighter future for its citizens.
Nasiru Yusuf Ibrahim
Bayero University, Kano (BUK) received five teams from the National Universities Commission (NUC) on Monday, December 9, 2024, to accredit nine academic programmes.
KANO FOCUS reports that the programmes under review include BSc Chemistry, Biology, Physics, Mathematics, Computer Engineering, BSc Forensic Science, Masters in Entrepreneurship, Early Childhood Education, and Primary Education.
This marks the third phase of BUK’s ongoing accreditation process, following the successful review of 30 programmes between November 18 and 30, 2024 under phase one and two.
Speaking on behalf of the Vice-Chancellor, Professor Sagir Adamu Abbas, the Deputy Vice-Chancellor (Academics), Professor Sani Muhammad Gumel, emphasized the significance of accreditation as a peer-review exercise that enhances the quality of teaching and research at the university.
Professor Bashir Maina, speaking on behalf of the teams, highlighted their mission to assess the programmes and provide recommendations in line with global best practices.
The Director of Academic Planning, Professor Yusuf Garba, explained that the current accreditation process is part of the final phase, which involves the evaluation of 22 programmes in total.
The NUC accreditation teams are expected to submit their findings and recommendations to the Vice-Chancellor later this week.
Nasiru Yusuf Ibrahim
The Farin Dutse community Sunday celebrated one of their own, Abduljabbar Idris Farin Dutse, for emerging as the Winner of the 2024 Jigawa state highest category, which is 60 Hizb (Qur’anic recitation, Tafsir, and Qira’at) held at the state capital, Dutse.
KANO FOCUS reports that the competition, which attracted participants from various communities across the state, highlights the importance of Quranic studies and memorization in promoting Islamic education.
The event was marked by a special Walima with large turnout of community members in attendance, with the Village Head of Farin Dutse Malam Mustapha Hassan and other prominent individuals.
While making remarks the village Head urged his wards to pursue Islamic Knowledge and adhere to the teachings of Islamic religion that they can be recognised here and hereafter as today Abduljabbar is making the whole community proud.
He further commended the Executive Governor of Jigawa State Mallam Umar Namadi fca for the sound policies, plans, programme and initiative that allows the less privilege to benefit from the bounties of his leadership style, he sincerely appreciates what has been accorded to their own-son and assured His Excellency their unflinching support.
The traditional ruler l also appreciate the gesture demonstrated by the Rt Honourable Speaker JSHoA Hon. Haruna Aliyu Dangyatin, for donating cash gifts to the top winner worth N100,000.
The Village Head of further reassured their continued support to the Emir of Dutse Alhaji Hamim Nuhu Muhammad Sunusi under whose guidance and leadership the indigent of the Emirate found it encouraging to send their wards to attain both Islamic and Western education,
While commenting after reading from the glorious Quaran, Malam Abduljabbar Idris Farin Dutse, expressed gratitude for the support from his Parents, teachers, family and community members, emphasizing the role of perseverance and dedication in achieving his goals. He encouraged other youth in the community to engage in Quranic memorization and seek knowledge.
Malam Bala Idris, the Imam of the Farin Dutse Sunnah Mosque praised achievement and recollect how dedication of some selected few individuals had yielded results stating that it serves as an inspiration for the younger generation and reflects the community’s commitment to fostering Islamic values and education.
The Farin Dutse community members went home with commitment to supporting their wards furtherance of both Quranic and Western education initiatives and nurturing future scholars to make difference in the scheme of societal upbringing.
AbdulJabbar Idris Farin Dutse Winner of the 2024 Jigawa state highest category, which is 60 Hizb (Qur’anic recitation, Tafsir, and Qira’at).
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Dangote Refinery: Finally, a Solution Nigeria Can’t Import!
