Devakumar Edwin, the Vice President of Oil and Gas at Dangote Industries Limited, has asserted that the refinery is equipped to thrive even without local support and may shift its focus primarily to exports if the local oil traders’ boycott persists.
During an appearance on the Brekete Family live show, Edwin emphasized that the refinery, which is already exporting diesel and aviation fuel, is prepared to export its Premium Motor Spirit (petrol) as well, should local traders, including NNPC Limited, continue to avoid the products.
Edwin confirmed that the refinery has recently begun producing petrol and will look to export it if domestic demand remains insufficient. Nigeria has been facing a severe petrol shortage over the last two months, with NNPC acknowledging a debt of over $6 billion to suppliers.
“We have been exporting aviation fuel and producing kerosene and diesel. Just yesterday, we started producing Premium Motor Spirit (PMS), which completes our current production capabilities. The only remaining product line is petrochemicals,” Edwin explained.
He noted that the refinery continues to struggle with domestic crude oil supply issues, leading to an increased reliance on imported crude. “We are not receiving adequate local crude allocations, and the crude that is available is being exported. Consequently, we are compelled to import crude oil. While we do receive some local crude, it falls short of our needs,” Edwin said.
To address these challenges, the refinery is constructing four new crude oil tanks, each with a capacity of 120 million liters, to accommodate the imported crude due to the insufficient local supply. “We are building these tanks to ensure we have enough storage for the imported crude because of the shipping time. Initially, our plan was to refine the imported crude locally and export the finished products while also supplying the local market. Unfortunately, we are facing ongoing issues with crude supply that hindered this approach,” Edwin added.
WRITTEN BY; CHRISTOPHER AND SUNITA