The commission said the refinery had required 63 million barrels during the quarter, but producers offered a higher volume.
“At the level of refinery participation, the statistics show that the Dangote Refinery required 63 million barrels in Q2, but the producers offered higher volumes of 68.1 million barrels. The 68.1 million barrels offered to the Dangote Refinery by producers represents 98 per cent of all offered volumes.
“Eventually, 52.6 million barrels were accepted by the Dangote refinery. This implies that the refinery only accepted 78 per cent of what it was offered,” the NUPRC stated.
The development formed part of the commission’s assessment of compliance with the DCSO, which requires oil producers to make crude available to domestic refineries in line with the provisions of the Petroleum Industry Act.
According to a statement by the NUPRC spokesman, Eniola Akinkuotu, a total of 53.7 million barrels of crude oil and condensate were supplied to local refiners between April and June, representing an overall performance rate of 97.4 per cent.
It said the DCSO was being actively administered and enforced through monthly consultations with crude oil producers and local licensed refineries.
“However, in line with the PIA, the framework operates on a ‘willing buyer, willing seller’ basis, which shapes eventual outcomes,” the commission stated.
The NUPRC said 18.13 million barrels were allocated to producers in April, while 19.31 million barrels were offered to refiners. Actual supply stood at 20.88 million barrels, representing 114.9 per cent performance against the allocation.
In May, it was stated that producers were allocated 18.78 million barrels and offered 23.19 million barrels to local refiners, but actual supply fell to 14.23 million barrels, representing 75.8 per cent compliance.
In June, 18.17 million barrels were allocated to producers, who offered 26.84 million barrels to refiners. The refiners eventually took 18.61 million barrels, representing 102.4 per cent performance.
The commission attributed the improvement in DCSO performance to increased local oil production and the signing of long-term crude supply agreements backed by bankable sales and purchase agreements between producers and domestic refiners.
“The commission observed that the improvement in DCSO coincided with an increase in local oil production and the signing of the long-term crude supply agreement supported by bankable sales and purchase agreements between the producers and domestic refiners,” it said.
The regulator reaffirmed its commitment to the Federal Government’s objective of achieving energy sufficiency, saying it would continue to enforce the DCSO framework while sustaining recent gains in crude oil production.
“The commission reaffirms its commitment to achieving the government’s objective of energy sufficiency. Leveraging the framework of the PIA, 2021, the commission aims to sustain recent gains in crude oil production while continuously enforcing the DCSO,” it stated.
However, Dangote spokesman, Anthony Chiejina, asked the NUPRC to show proof of the crude offered and rejected.
“Let them show us the statistics, we’ll now compare and check, and then we’ll come back to you. That’s all. Because they can’t just by word of mouth tell you, ‘Oh, we give this to Dangote’. It’s crude, it’s not pepper.
“If they have the statistics, let them send it to us and the period it was done, then I will now come back to you to match it. That’s all,” he reacted.