Local Refineries Starving As Oil Producers Divert 500,000 Barrels To Foreign Buyers – PETROAN

Local Refineries Starving As Oil Producers Divert 500,000 Barrels To Foreign Buyers – PETROAN

At a recent stakeholders’ meeting, refiners and oil producers accused each other of failing to uphold domestic crude supply agreements. While producers claimed refiners often failed to meet operational and commercial terms, refiners insisted that producers preferred to sell crude abroad instead of fulfilling local obligations.…..READ MORE 

The longstanding dispute between local refiners and crude suppliers was evident when the 650,000-barrel-per-day Dangote Refinery struggled for months to secure adequate crude supply. Dangote Group President, Alhaji Aliko Dangote, had accused international oil companies of prioritizing exports to Asia over domestic needs, thereby sabotaging local refineries.

Following intervention from President Bola Tinubu, crude meant for domestic refining was allocated to the Dangote Refinery and others. However, industry stakeholders argue that the naira-for-crude deal, introduced in October 2024, has yet to resolve supply challenges.

Meanwhile, reports indicate that Dangote Refinery is expecting the delivery of 12 million barrels of crude oil from the United States this month, further highlighting the ongoing domestic supply struggles.