News
Dangote supports NUPRC on domestic crude supply guidelines
- /home/naijuinz/public_html/wp-content/plugins/mvp-social-buttons/mvp-social-buttons.php on line 27
https://naijablitznews.com/wp-content/uploads/2024/07/Screenshot_20240718-130106-520x600.png&description=Dangote supports NUPRC on domestic crude supply guidelines', 'pinterestShare', 'width=750,height=350'); return false;" title="Pin This Post">
- Share
- Tweet /home/naijuinz/public_html/wp-content/plugins/mvp-social-buttons/mvp-social-buttons.php on line 72
https://naijablitznews.com/wp-content/uploads/2024/07/Screenshot_20240718-130106-520x600.png&description=Dangote supports NUPRC on domestic crude supply guidelines', 'pinterestShare', 'width=750,height=350'); return false;" title="Pin This Post">
By Kayode Sanni-Arewa
THE Management of Dangote Industries Limited (DIL), have 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.
Vice President, 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 $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 adding we asked the regulator to take a second look at the crude pricing.
Edwin’s response came against the background of a statement by the Chief Executive Officer of NUPRC, Gbenga Komolafe, who 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 only 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 will 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 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.
News
Watch moment, traditional rulers present kola to FCT minister at ongoing town hall meeting in Akpor, Obio/Akpor LGA
A video clip showing traditional rulers presenting kola to FCT minister Nyesom Wike at Akpor in Obio/Akpor LGA in Rivers State has emerged.
Watch:
News
Independence Day: NNPCL Slashes Petrol Price With N66 Discount for Nigerians
The Nigerian National Petroleum Company Limited (NNPCL) has announced a N66 per litre discount on petrol purchases at its retail outlets nationwide to mark Nigeria’s 66th Independence Anniversary.
The offer, which runs from October 1 to 7, 2026, comes less than 24 hours after the state-owned oil company reduced its petrol pump price to N1,370 per litre.
NNPCL announced the promotional offer in a notice posted on its official X account on Thursday, urging Nigerians to take advantage of the temporary price reduction.
According to the company, customers will enjoy a N66 discount on every litre of Premium Motor Spirit (PMS) purchased at participating NNPC Retail stations, provided they make payments through its mobile application.
“N66 off every litre of PMS at NNPC Retail today till 7 October. Pay with the app at any participating station. T&Cs apply,” the company stated.
The latest offer follows a fresh round of petrol price adjustments triggered by a reduction in the gantry price of petrol by the Dangote Refinery.
On Wednesday, NNPCL filling stations in Abuja and neighbouring areas reduced their pump price by N25, bringing the cost of petrol down to N1,370 per litre.
The adjustment came after the Dangote Refinery lowered its gantry price to N1,325 per litre, prompting changes in retail prices across parts of the country.
Similarly, MRS filling stations in Abuja had earlier reduced their petrol pump price to N1,370 per litre.
With the latest price cuts and promotional offer, motorists in Abuja and surrounding areas can now access petrol at varying prices, with pump rates previously ranging between N1,370 and N1,450 per litre.
The NNPCL discount is expected to provide additional relief to motorists during the week-long Independence Day promotion, although customers must use the company’s mobile app and patronise participating outlets to qualify.
News
Nigeria Bids Farewell to Reverend Okoye, Ex-Aso Villa Chaplain
National figures, religious leaders, and grieving family members gathered in Abuja on Wednesday to begin funeral rites for Rev. Dr. William Okoye, who passed away aged 74.
The founding General Overseer of All Christians Fellowship Mission (ACFM) Worldwide was honoured during a solemn Lying in State and Service of Songs at the Church’s Maitama headquarters.
Former Information Minister Prof. Jerry Gana paid emotional tribute to the late Cleric, highlighting his unwavering devotion to the Christian gospel and his profound influence on national governance.
”He was never ashamed of the Gospel because for him it is the power of God for salvation.
“He proclaimed it very clearly, firmly, and convincingly,” Gana said.
Gana recalled working alongside Okoye as a spiritual advisor under the presidential administrations of Olusegun Obasanjo and Goodluck Jonathan, emphasising his absolute fearlessness before leaders.
”Every morning at 6 a.m., he would pick me for prayer with the president. He was ready to speak truth to power. Nigeria has lost a giant,” Gana added.
Emeritus Archbishop of Abuja, John Cardinal Onaiyekan, reflected fondly on Okoye’s pioneering role during the early days of the Federal Capital Territory’s development.
”When he started here to gather people in Abuja to pray on Sundays, there were no churches here. People in Lagos thought the new capital was not serious,” Onaiyekan recalled.
The Cardinal noted that what began as a humble fellowship grew into a massive global movement through Okoye’s vision and commitment to community building.
”What I remember him for is somebody who sees a need and does something to fill it.
“That little seed planted has now grown into a big tree,” Onaiyekan stated.
Rev. Moses Aransiola, National Director of Nigeria Prays, praised the late clergyman for prioritising moral integrity over personal gain throughout his 52-year ministry.
”He did not value material things above integrity, commitment, loyalty, and faithfulness.
“To be a pastor to two sitting presidents is a real opportunity God gave him,” he said.
Aransiola urged Nigerians to emulate Okoye’s steadfast character, noting that he lived an uncompromised life that earned him national respect.
”When everybody is chasing after compromising their lives and integrity, God brought honour to Reverend Okoye easily. It pays to live a life of legacy,” he added.
In a joint tribute, the children of Okoye remembered him not only as a renowned public minister, but as a devoted, loving, and humorous father.
”Daddy lived his faith daily. We remember a busy man who still made time for his family, took us on vacations, and filled our home with laughter,” his children shared.
They reaffirmed their commitment to upholding their father’s principle: “Labour hard, consume little, give much, and all to Christ,” while guarding the family name.
”He may not have left us great material wealth, but he left us something far more enduring: his name, his faith, his values, and his example,” they added.
The family announced that Rev. Okoye’s vision would be preserved through the William and Helen Heritage Foundation, honouring both him and his late wife, Evangelist Helen Okoye.
TheNews Agency of Nigeria (NAN)reports the events continue in Abuja with a Night of Tributes on Oct. 2 at the National Christian Centre, before moving to Agulu, Anambra State, for interment on Oct. 9.
The deceased is survived by six children, nine grandchildren, including Mr Victor Okoye, a journalist with theNews Agency of Nigeria(NAN), and the entire ACFM family.
Born in September 1951, the former Aso Villa Chapel Chaplain died on July 15, at the National Hospital in Abuja.
The Cleric will be buried on Oct. 9 in his country home, Amatutu Village, Agulu, Anaocha LGA, Anambra State, after a week-long funeral programme.(NAN)
-
News10 hours agoNigeria at 66: ‘Tinubu made Yahoo Yahoo promise to Nigerians, he’s fake’ – Atiku
-
Metro10 hours agoGunmen Abduct 20 Corps Members In Imo
-
Foreign10 hours agoUK government begins freeing 5,000 prisoners due to extreme prison overcrowding
-
News10 hours agoNigeria Is Now the Worst Place To Be Born — Peter Obi
-
News10 hours agoIf you elect me as your president in 2027, I will end election rigging in Nigeria — Atiku
-
News10 hours agoNigerian researcher Chika Onochie wins grant for male fertility study in Canada

You must be logged in to post a comment Login