Like Dangote, Edo refinery counters NUPRC, NNPCL over crude supply

A few weeks after Dangote Industries Limited, the operators of the Dangote Refinery raised alarm about the inability to get crude allocation under the Domestic Crude Supply Obligation (DCSO), another operator has raised a similar concern.

This time, the management of AIPCC Energy Limited, operators of the Edo Refinery and Petrochemicals Company Limited (ERPCL) lamented that it lacks crude oil supply despite being a fully functional 1,000 barrels per day crude refinery.

This countered the position of the Nigerian National Petroleum Company Ltd (NNPCL Ltd) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on crude supply to the refinery.

In a chat with journalists on Sunday, the Edo refinery’s representative, Segun Okeni, said the company is yet to get any supply from the relevant authorities — despite President Bola Tinubu’s directive on crude oil supply to local refineries.

He said the firm is facing significant challenges due to the persistent lack of crude supply.

The representative added that the refinery can barely function at full capacity.

READ ALSO:Atiku cautions against sabotaging Dangote Refinery project

Okeni said although the company has existing crude oil supply agreements with Seplat Energy and ND Western since 2022, bureaucratic bottlenecks have prevented the refinery from accessing the much-needed crude feedstock.

He said: “On 18th August 2021, our team led by our chairman, met with the NNPCL CEO and its top management team to discuss our intention to buy crude oil from NNPCL and we immediately wrote seeking crude supply, the letter was dated 22 July 2022.

“In July 2022, the representatives of NNPC (from HQ Abuja and NPDC Benin) visited our facility for site inspection and to confirm the mechanical completion of the Edo refinery.

“In September 2022, we were invited for a commercial negotiation meeting with the NNPC Head of terms, after which we sent a follow-up letter identifying the oil fields from which we can offtake crude oil.

“In March 2022, we also wrote to the Ministry of Petroleum Resources, informing it of our refinery status, future projects and our challenges of lack of crude oil supply to our refinery.

“We had also written and had a meeting with the NNPC Exploration and Production Limited (NEPL) between November 2022 and March 2023, indicating our severe need for crude oil supply from oil fields where NEPL has equity stakes.”

By: Babajide Okeowo

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