Dangote Petroleum Refinery has firmly denied allegations of reselling shipments of crude oil from the United States and Nigeria, contradicting claims that technical problems are affecting its operations.
On Wednesday, Reuters cited three sources stating that the refinery was reselling crude due to technical difficulties at the plant.
However, an executive from Dangote Petroleum asserted that the crude distillation unit (CDU) is fully operational.
The sources mentioned that cargoes of US West Texas Intermediate (WTI) Midland crude and Nigerian Escravos and Forcados crude were among those allegedly being resold. While resale of crude by refineries is rare, it is not unheard of, traders noted.
In response to these reports, Anthony Chiejina, the chief branding and communication officer of Dangote Group, issued a statement refuting the claims.
“Our attention has been drawn to a misleading report on our crude distillation unit and also that we are offering crude for resale,” Chiejina said.
“This is an outright falsehood as we are not authorized to sell any crude we buy from Nigeria! Also, our CDU is working and in perfect condition. We advise that you ignore these false narratives being peddled by those bent on the importation of dirty fuels into the country.”
The development comes amid broader issues between the refinery and government agencies. Despite the refinery’s assurances, sources indicate that the technical challenges might be impacting operations.
The refinery, which started production in January 2024, is set to become the largest in Africa and Europe once fully operational.
This facility, built at a cost of $20 billion by Aliko Dangote, Africa’s richest man, is designed to transform Nigeria from a fuel importer to an exporter, a significant shift given the country’s status as Africa’s top oil producer.
Reuters sources revealed that the refinery has been importing several crude cargoes a month, including over 16 million barrels of WTI crude in 2024 alone, with plans for increased imports in the coming months.
The recent resale allegations led to a decline in crude prices, with Brent crude falling as much as 2.5% before recovering.
In addition to addressing these operational issues, the Dangote Group plans to list its refinery and fertilizer subsidiary on the Nigerian stock exchange by early 2025.
This move aims to ease foreign exchange pressures on Nigeria’s economy.
Owner of the refinery and Africa’s richest man, Dangote, has been embroiled in a dispute with regulators and the state oil corporation, NNPC.
Recently, the billionaire granted an interview where he spoke extensively on the challenges faced by his refinery in sourcing crude oil.
He also walked back from his earlier promise to invest heavily in steel production.
Recently, Vice President of Dangote Industries Limited, Devakumar Edwin, accused international oil companies of hindering the refinery’s launch by selling crude oil at inflated prices in Nigeria and suggested that many imported fuel products were substandard.
