Dangote Refinery disputes crude rejection data

Dangote Petroleum Refinery and Petrochemicals (Dangote Petroleum Refinery) responded to data released by the Nigeria — Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicating that the refinery rejected 15.5 million barrels of crude oil offered by local producers in Q2 2026. The refinery clarified that it remains committed to the Domestic Crude Supply Obligation (DCSO) framework but stressed that crude must be available in adequate volumes and at commercially competitive prices. Devakumar Edwin, Group Vice President of Dangote Group, stated that the central issue is the quantity genuinely available under commercially viable conditions, not the nominal volume offered. He noted that the refinery has faced challenges securing direct supplies, often having to source through International Oil Companies and third parties, which adds premiums and transaction costs, making domestic crude less competitive than international benchmarks published by S&P Global Energy and Argus Media. Edwin also raised concerns about aspects of the Petroleum Industry Act that allow counterparties to withdraw from negotiations without structured review, undermining the DCSO's effectiveness. The refinery reiterated that reliable access to crude is critical for maximizing local refining capacity, strengthening Nigeria's energy security, and reducing reliance on imports.