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Dangote supports NUPRC on domestic crude supply guidelines
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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
Gunmen Kidnap Ondo Traditional Ruler, Police Begin Manhunt
Some gunmen on Saturday reportedly invaded the Ode Oriya community in the Owo Local Government Area of Ondo State and abducted the traditional ruler of the community, Adeniyi Adelana.
A source said the hoodlums stormed the community at about 8 pm on Saturday and went to the residence of the 60-year-old community leader, whisking him away to an unknown destination in the bush.
The Police Public Relations Officer, DSP Abayomi Jimoh, who confirmed the incident in a telephone conversation with our correspondent on Sunday, said the state command had commenced a rescue operation in the forest.
“The Ondo State Police Command has launched a coordinated rescue operation following the abduction of a community leader by suspected kidnappers in Ode Oriya Village, Owo Local Government Area of the state.
“Preliminary reports indicate that at about 8:05 pm on the reported date, a group of approximately six armed men stormed the residence of Mr Adeniyi Adelana, aged 60, the Baale of Ode Oriya Village. The assailants reportedly invaded the premises under the cover of darkness and forcefully whisked the victim away through a nearby bush path to an unknown destination.
“Upon receipt of the distress report, the Divisional Police Officer, B Division, Owo, immediately mobilised a combined team of police operatives and other security personnel to the scene. The area was swiftly secured, and a preliminary assessment of the crime scene was conducted as part of ongoing investigative efforts,” the PPRO said.
Jimoh added that the victim’s wife, who sustained a gunshot injury to her right hand during the attack, had been taken to the hospital, where she was receiving treatment.
“She was promptly rescued and taken to a nearby medical facility, where she is currently receiving treatment and responding positively to medical care,” he said.
According to him, a comprehensive search-and-rescue operation was activated, with security operatives combing nearby forests, bush paths, and suspected escape routes “in a determined effort to track the movement of the kidnappers, secure the victim’s safe release, and bring the perpetrators to justice.”
“Tactical deployments have also been strengthened across the area and adjoining communities to enhance operational effectiveness,” he added.
The police spokesman also said the state Commissioner of Police, Mr Felix Ohagwu, has directed all tactical units, intelligence assets, and operational teams of the command to intensify efforts toward the swift rescue of the victim and the arrest of those responsible.
“The command remains resolute in its commitment to ensuring that the victim is reunited safely with his family while all those involved face the full weight of the law,” the PPRO added.
News
US Air Force B-52 bomber crashes after takeoff
A United States Air Force B-52 Stratofortress has crashed shortly after takeoff from Edwards Air Force Base in California, according to the base authorities.
The incident occurred soon after departure, prompting an immediate emergency response at the site.
“Emergency crews immediately responded to the scene and the situation is ongoing,” the base wrote on Monday in a post on X.
At the time of reporting, officials had not confirmed any casualties, and the cause of the crash remained unclear.
The B-52 Stratofortress is a long-range, subsonic bomber designed to carry nuclear weapons, with a payload capacity of up to 70,000 pounds. Each aircraft is estimated to be worth about $110 million.
The crash comes less than 24 hours after another deadly aviation incident in the United States in which 12 people were killed when a plane went down near an airport in Missouri.
The fatal crash occurred on Sunday near Butler Memorial Airport in Bates County, south of Kansas City, the state’s largest city.
“Troopers are on scene assisting the Butler Police Department & Bates County Sheriff’s Office of a Fatal Plane Crash near the Butler Memorial Airport,” the Missouri State Highway Patrol posted on X.
“At this time reports indicate all occupants (12 total) have perished,” it said.
Missouri Highway Patrol Sergeant Justin Ewing said the aircraft was being used for skydiving operations.
He added that emergency teams were alerted at about 11:30 a.m. local time on Sunday after reports of a crash and fire.
According to him, firefighters quickly contained the blaze, while describing the scene as “brutal.”
“It landed in a field adjacent to the airport, but I think they’re shutting down the roadway just as a precaution,” Ewing said.
News
How troops rescued Gen Rabe’s wife after being shot by bandits — Sources
Troops of Operation FANSAN YANMA have rescued Amina Abubakar, the wife of retired Major General Abubakar Rabe, who was abducted alongside her husband by bandits in Katsina.
The rescue followed a fierce encounter between troops and armed bandits during a search-and-rescue operation in Matazu Local Government Area of the state.
Military sources told Zagazola Makama that the operation was carried out under Operation CLEAN SWEEP III, a sustained offensive launched after the abduction of the retired senior military officer and members of his family.
According to the sources, troops acting on credible intelligence conducted coordinated operations across Matazu and adjoining communities, targeting known bandit enclaves and escape routes.
The breakthrough came when soldiers made contact with the kidnappers at Tunga village, forcing the criminals to abandon their captive and flee under intense military pressure.
“The bandits shot her and fled when we made contact at Tunga village. We have rescued Mrs. Abubakar. She is bleeding, we have given her first aid and are moving her for urgent medical attention,” a military source disclosed.
The source said the rescued victim was immediately stabilised by troops at the scene before being evacuated to a medical facility for comprehensive treatment.
The development comes days after retired Major General Abubakar Rabe reportedly lost his life while in captivity, sparking outrage and renewed calls for intensified military action against bandit groups operating in the North-West.
Military authorities said follow-up operations have been intensified, with troops maintaining pressure on fleeing bandits and suspected kingpins believed to be responsible for the abduction and subsequent killing of the retired general.
Security sources added that the ongoing clearance operation under Operation CLEAN SWEEP III would continue until all identified criminal hideouts in the area are dismantled.
They reaffirmed the commitment of the Armed Forces and other security agencies to tracking down those responsible for the attack and ensuring they face justice.
The Nigerian military has in recent weeks stepped up coordinated air and ground offensives against bandit strongholds across Katsina and neighbouring states as part of efforts to curb kidnapping, cattle rustling and other violent crimes in the region.
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