Connect with us

News

Dangote supports NUPRC on domestic crude supply guidelines

Published

on

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.

Advertisement

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.”

Advertisement

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.

Advertisement

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.

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Just in: NYSC Releases Batch ‘C’ Corps Members Call Up Letters

Published

on

The National Youth Service Corps has announced the release of the 2024 Batch ‘C’ Stream I call-up letters for prospective corps members.

The corps made the announcement in a series of post on its official X (former Twitter) handle on Monday.

It said orientation camp for the stream is expected to start on November 27, 2024 and closes on December 17, 2024.

According to the post, “some prospective corp members posted to Lagos will have orientation in Ogun and Osun.

Advertisement

“While some of those posted to Zamfara will have in Kebbi and Sokoto etc”

The corps, however, advised prospective corps members to print and sign an addendum, which will be submitted during registration at the orientation camp.

Tips to guide Deployed Prospective Corps Members

Do not travel to the Orientation Camps at night. Break your journey when necessary.
Report on your scheduled reporting date.
Apply for spelling error and name rearrangement on your dashboard.
After documentation in the Camp, you cannot change your Date of Birth, Date of Graduation, Course of Study and Passport Photograph.
Do not report to the Camp if there is any discrepancies in your course of study or with the Date of Graduation on your Statement of Result and your Call-up Letter. Contact your Institution to sort it out.
ATTENTION TO ALL 2024 BATCH ”C” STREAM I MARRIED FEMALE PROSPECTIVE CORPS MEMBERS

Advertisement

All married female Prospective Corps members (PCMs) who are deployed to States where their husbands are not domiciled should report to the nearest NYSC Orientation Camp for their State of Deployment to be changed.

They are to report during the period of Registration at the Orientation Camps with the copies of their marital and other relevant documents as evidence. Once the change is made it will reflect on theirM dashboard for reprinting.

Continue Reading

News

Oba of Benin to withdraw suit as Okpebholo restores rights

Published

on

The Oba of Benin, Oba Ewuare II, and the Benin Traditional Council may withdraw the suits they filed against the state government as Governor Monday Okpebholo, on Sunday, restored the full statutory rights of the Oba and reversed the policies of the previous administration that impacted the Benin Traditional Council.

A statement on Sunday by Okepebholo’s Chief Press Secretary, Fred Itua, said the governor abolished the new traditional councils in Edo South created by the immediate-past governor, Godwin Obaseki.

Okpebholo also backed the Federal Government’s recognition of the Oba’s palace as the custodian of repatriated Benin artefacts looted during the 1897 British colonial expedition.

Providing an insight into the governor’s gesture, the state Attorney General and Commissioner for Justice, Dr Samson Osagie, said it signaled the resolution of the crisis between the Oba of Benin and the Edo State government leading to lawsuits duringt the Obaseki’s administration.

Advertisement

Osagies said, “The cases in court are cases which the Oba of Benin himself and the Benin Traditional Council instituted against the state government, and they are all civil matters. And you know that in civil suit or in any suit, parties are encouraged to settle amicably.

“So, if the parties are already settling and one side is already meeting the condition of settlement, the next step you are going to hear is that the party who went to court, which is the Oba of Benin, and the Benin Traditional Council, will instruct their counsel to withdraw the cases from court and that will be the end of the matter.

“The two parties are now settling for harmony and peace to reign, so the government is doing its own side of it.

“This statement is a prelude to discontinuing all legal proceedings with respect to the twin issues of the concession of the Oba Akenzua Cultural Centre by government to the Benin Traditional Council for 30 years and the creation of additional councils.”

Advertisement

The statement by Okepebholo’s Chief Press Secretary outlined the administration’s commitment to restoring the dignity and authority of the Benin monarch.

“This administration also hereby abolishes the new traditional councils in Edo South, created by the last administration,” the statement noted.

Additionally, Governor Okpebhol revoked the decision of the Obaseki’s administration to convert the Oba Akenzua II Cultural Centre into a motor park.

The government announced plans to restore the cultural centre to its original purpose.

Advertisement

“This administration is restoring the Oba Akenzua Centre to a suitable condition for its original purpose,” the statement added.

The governor also reinstated the financial entitlements of the Benin Traditional Council, ordering that the status quo before the creation of the abolished councils be maintained.

According to the statement, Okpebholo affirmed support for the Federal Government’s official gazette, which recognizes the Oba of Benin as the rightful owner and custodian of the repatriated Benin artefacts.

He also distanced his administration from the Museum of West Africa Art, instead backing the Benin Royal Museum project to house the artefacts.

Advertisement

“The Federal Government has also issued a gazette for the recognition of ownership and custody of the repatriated Benin artefacts to the Oba of Benin, Oba Ewuare II,” the statement explained. “Governor Okpebholo respects the rights and privileges of the traditional ruler of Benin kingdom… and pledges the support of his administration to ensure the monarch plays his role as the custodian of the rich cultural heritage of the Benin people.”

Okpebholo reiterated his administration’s respect for traditional institutions and vowed to avoid interference in the internal affairs of the Benin Traditional Council. “The Oba of Benin, as the father of all Benin people, is the sole custodian of the customs and traditions of the Benin people, and my administration respects customs and traditions in the land,” he stated, emphasising the government’s efforts to uphold the cultural and historical integrity of the Benin Kingdom.

Continue Reading

News

Oyedepo’s jet can’t leave private airstrip without clearance – Keyamo

Published

on

The Minister of Aviation and Aerospace Development, Festus Keyamo, on Sunday said there was no way the private plane of privileged Nigerians, including the Founder and Presiding Bishop of Living Faith Bible Church Worldwide, Bishop David Oyedepo, can leave the country directly from their airstrips without first securing clearance from relevant authorities.

Keyamo made the clarification when he was featured as a guest on Channels Television’s Politics Today.

His statement comes barely two months after members of the House of Representatives called for a revocation of airstrip licences issued to certain individuals and private organisations, citing security reasons.

The House also called for an immediate halt to new airstrip licences for individuals and organisations.

Advertisement

But Keyamo insisted that there was no way a plane or drone, even if it belongs to the military, can leave or come into the country without first getting a nod from the agency.

When asked if the airstrip of Oyedepo also passed through the same due process, Keyamo nodded.

He said, “Oh yes, absolutely. That’s no problem. They were only concerned about the fact that they thought that somebody can take off from a private airstrip and fly out of Nigeria or fly into Nigeria. It is not possible.

“You must land in an international airport first. Then the Customs, immigration and NDLEA will process you before you take off from there to your private airstrip. If you are also flying out, you must land at an international airport. You will go through Customs, immigration and all the normal process before flying out.

Advertisement

“So nobody uses an airstrip for any such purpose without seeking clearance. At every point in time, the authorities must approve.”

When quizzed on how many airstrips the country is operating at the moment, Keyamo said they are in the range of 40.

“We have a number of them, more than 40. For the federal airport, we have 23. The state airport has about eight or nine now.

“And then the airstrips are about 40 or thereabouts. I have been there myself,” he stated.

Advertisement
Continue Reading

Trending

Copyright © 2024 Naija Blitz News