The Minister of State for Petroleum Resources (Oil), Hon. Heineken Lokpobiri has convened a high-level meeting with key stakeholders in the oil sector to address and resolve issues concerning the Dangote Refinery, as stated in a press release by the ministry.
The meeting, held on Monday in Abuja, was attended by Aliko Dangote, Chairman and CEO of Dangote Group, and Farouk Ahmed, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Other attendees include Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, and Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited.
The industry has recently been engulfed in a face-off disagreement, where the leadership of the Dangote Group, NMDPRA, and NNPCL have been at odds over pertinent issues. Dangote had declared that the NNPCL no longer owns a 20 percent stake in its refinery, emphasizing that the NNPCL currently holds only 7.2 percent of the refinery due to its failure to pay the balance of its shares, which was due in June.
However, the NNPCL has stated that the decision to cap its equity participation at the paid-up sum was made and communicated to the Dangote Refinery several months ago.
The NMDPRA’s claim that the Dangote Refinery’s operations were below international standards was refuted by Dangote. Furthermore, Dangote accused the International Oil Companies of frustrating the refinery’s operations by selling crude oil to it through their foreign trading arms, offering cargoes at two to four dollars per barrel, above the NUPRC’s official price.
Against this backdrop, the Minister convened a meeting to find a lasting solution to the current impasse affecting the Dangote Refinery, with all parties demonstrating a commitment to collaborative and proactive problem-solving.
Mr. Lokpobiri emphasized the importance of cooperation and synergy among all stakeholders, stating that 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 underscored the Minister’s dedication to fostering a conducive environment for Nigeria’s oil and gas sector.
The anticipated commencement of operations of the $20 billion Dangote Refinery, with a refining capacity of 650,000 barrels per day (bpd), gave impetus to the country’s oil sector, as it would ensure that Nigeria was not reliant on fuel from overseas.
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