The Nigerian National Petroleum Company (NNPC) Limited has urged the Dangote Refinery to independently source its feedstock, emphasizing that the refining business requires securing a reliable source of raw materials and establishing a market.
This statement was made by NNPC’s Group Chief Executive Officer, Mele Kyari, during a Senate Ad-Hoc Committee session on Wednesday, which was investigating alleged economic sabotage in Nigeria’s petroleum industry.
Kyari clarified that NNPC has adhered to all legal guidelines in its dealings with partners and refuted claims of economic sabotage.
He emphasized that the law is clear regarding domestic crude oil supply obligations, but it requires the presence of both a willing buyer and seller for transactions to occur.
Kyari stated, “Refining business is a straightforward business. You must secure (a source for) your feedstock and you must find a market.”
“This is basic and this determines what happens in any refinery anywhere in the world. That is the business of refining. We have done nothing to sabotage any domestic refinery.”
Additionally, Kyari dismissed allegations that NNPC was involved in the importation of sub-standard petroleum products, asserting that regulatory agencies would not permit such products to enter the country.
He also supported calls for live broadcasts of the committee’s sessions to avoid misinformation and assured the company’s full cooperation with the ongoing investigation.
Kyari highlighted the challenges facing Nigeria’s petroleum sector, including crude oil theft, pipeline vandalism, and insufficient investment in the upstream sector. He reiterated NNPC’s commitment to the country’s progress and compliance with the Petroleum Industry Act and other relevant laws.
“We are faithful, loyal and committed to the progress and development of this country. It is our duty to protect the overall interest of this great nation. We are not in breach of any rules,” Kyari added.
This response from NNPC follows comments made by Aliko Dangote, Chairman of the Dangote Group, who disclosed that international oil companies in Nigeria have been reluctant to supply crude oil to his refinery, opting instead to export it for foreign exchange.
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