Refinery Crisis: FG reconciles Dangote, NNPC, NMDPRA

Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), has convened a high-level meeting with key stakeholders in the oil sector to resolve issues concerning the Dangote Refinery, according to a statement by the oil ministry.
The meeting, held on Monday in Abuja, had Aliko Dangote, Chairman/CEO of Dangote Group, and Farouk Ahmed, the Nigerian Midstream and Downstream Petroleum Regulatory Authority CEO (NMDPRA), in attendance. Others were Gbenga Komolafe, Nigerian Upstream Petroleum Regulatory Commission chief executive and Mele Kyari, GCEO of the Nigerian National Petroleum Company Limited.
A recent face-off in the industry saw the leadership of the Dangote Group, NMDPRA and NNPCL disagreeing over pertinent issues. Dangote had declared that the NNPCL no longer own a 20 per cent stake in its refinery, stressing that the Nigerian oil company now owns only 7.2 per cent of the refinery due to its failure to pay the balance of its shares, due in June.
The NNPCL, however, said the decision to cap its equity participation at the paid-up sum was made and communicated to Dangote Refinery several months ago.
The NMDPRA was also at loggerheads with Dangote over issues bordering on licences, claiming that the Dangote refinery was at its pre-commissioning stage while its diesel was below international standards.
Dangote, however, refuted the NMDPRA’s claim.
Dangote also accused the International Oil Companies of frustrating its refinery operations by selling crude oil to it through their foreign trading arms, offering cargoes at two to four dollars per barrel, above NUPRC’s official price.
Against this background, the minister convened the meeting to find a lasting solution to the current impasse affecting the Dangote refinery, with all parties demonstrating commitment to collaborative and proactive problem-solving.
Mr Lokpobiri emphasised the importance of cooperation and synergy among all stakeholders. He said this would ensure the success and optimal performance of the oil and gas sector, which he described as pivotal for Nigeria’s economic growth and energy security.
The stakeholders expressed gratitude to the minister for his exemplary leadership and timely intervention in facilitating the dialogue. The meeting marked a significant step towards resolving the challenges and underscores the minister’s dedication to fostering a conducive environment for Nigeria’s oil and gas sector.
The coming onstream of the $20 billion Dangote Refinery, with a refining capacity of 650,000 barrels per day (bpd) in 2023, gave impetus to the country’s oil sector as it would ensure that Nigeria was not reliant on fuel from overseas.
(NAN)
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