Dangote Refinery: Drop in Crude Order Tied to Fluctuating Oil Prices, Not Facility Breakdown
Dangote Refinery: Drop in Crude Order Tied to Fluctuating Oil Prices, Not Facility Breakdown
*Reveals over 22 sabotage incidents reported since launch
*Explains recent massive reorganisation at $20bn refinery
Emmanuel Addeh in Abuja
The management of the 650,000 barrels per day Dangote Refinery in Lagos yesterday responded to reports that it slashed crude oil purchase by at least 50 per cent due to incessant breakdowns of the facility, saying that the action was a planned response to rising global crude prices.
Earlier, there were reports that the facility was buying a lot less crude lately amid operational setbacks. The reports said Dangote was expected to purchase fewer than 300,000 barrels a day of crude this month, referencing tanker-tracking data and cargo allocation lists.
Comprising both local supplies and imports, the report stated that crude inflow is currently down by more than 50 per cent from a peak in July, and less than half the plant’s capacity, expressing skepticism that the refinery can operate at a high rate going into 2026.
It said the plant’s residue fluid catalytic cracker unit was due to restart this week after a hiatus stretching back to late August, according to IIR, which monitors outages, insisting that major work remains to be completed on the petrol-making unit. Besides, the IIR report said it could shut down again in January.
However, Vice President of Dangote Industries, Devakumar Edwin, speaking on the matter when he took the King of Ekpetiama Kingdom and Chairman of Bayelsa Traditional Rulers Council, Bubaraye Dakolo, as well as select Nigerians on a tour of the facility, stressed that nothing could be further from the truth.
Besides, Edwin stated that the refinery was adjusting crude purchases based on price fluctuations and inventory levels, but maintained that no facility of that magnitude operates at 100 per cent capacity every time.
“No factory runs at 100 per cent every day without issues. What matters is whether any problem affects final production,” he said, explaining that the facility is designed for turnaround maintenance every five years, unlike older facilities that require more frequent shutdowns.
In the same vein, Edwin explained the recent massive reorganisation in the $20 billion refinery, revealing that at least 22 incidents of sabotage had been recorded since the refinery began production, prompting major staff rejigging.
He insisted that it had nothing to do with the disagreement with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
Last month, the Dangote refinery confirmed the sacking of only “a small number of workers,” without stating the actual number, but PENGASSAN claimed that over 800 employees were affected. However, the Dangote refinery said the workers were sacked to safeguard the refinery from repeated acts of sabotage that “have raised safety concerns and affected operational efficiency”.
Edwin added: “We have been under repeated attacks like some people have pointed out earlier. Originally, the refinery, they said it would not even come up. Then they said it will not be commissioned and start production.
“We went through all those phases. Then they said, okay, we have an issue with PENGASSAN, which is totally false news. Because when we went and had a meeting in Abuja with the ministers and the security agencies, I repeatedly emphasised that we have no issue with PENGASSAN.
“The reorganisation we did had nothing to do with PENGASSAN. We started facing incidents of sabotage. We have 22 incidences of sabotage. I have the dates, the unit where it was done, and when it was done. All are documented data. Because you went to the master control room, you know that all the data is completely captured.”
Speaking on why the alleged plans to sabotage the refinery did not succeed, Edwin said that this is because the facility operates a modern system, reducing the impact of any breach on the facility’s equipment.
He added: “And in the same way, they were trying to bring down the equipment. Somebody will open a valve to try to see if it will break down. Fortunately for us, by the grace of God, it’s a very ultra-modern refinery.
“So when somebody starts a fire somewhere, the fire protection system is so that it is immediately controlled. The same way, when they try to break down an instrument by opening a valve or adjusting some instruments, some other instrument overrules it and stops. But it is documented.”
The top Dangote Group official noted that after an investigation, the company decided to reorganise the staffing at the refinery to eliminate such incidents.
“So we started looking at it, and then we were a bit concerned that somebody can just bring it down and a lot of investment has gone in. That is why we did this massive reorganisation. It has nothing to do with PENGASSAN and I repeatedly emphasised that even the dates or planning, everything were different,” he added.
*Reveals over 22 sabotage incidents reported since launch *Explains recent massive reorganisation at $20bn refinery Emmanuel Addeh in Abuja The management of the 650,000 barrels per day Dangote Refinery in
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