Nigeria’s Dangote Refinery claims that high prices, not flaws, are to blame for the decline in oil intake

Nigeria’s Dangote Refinery said on Friday that recent decreases in crude oil shipments were a planned response to elevated world prices, not the consequence of operational difficulties.

The remarks were made by the company during a media tour intended to allay worries about the facility’s crude volumes and possible outages.

Dangote Industries vice president Edwin Devakumar stated that the refinery was modifying its crude purchases in response to changes in inventory levels and price swings.

The 650,000-barrel-per-day refinery, built by billionaire Aliko Dangote, has undergone three rounds of maintenance this year, leading to reduced crude demand.

According to Devakumar, “no factory runs at 100% every day without issues,” “What matters is whether any problem affects final production.”

In contrast to older facilities that need more frequent shutdowns, he said the refinery, which started operations earlier this year, is built for turnaround maintenance every five years.

But according to Reuters, the refinery’s gasoline unit has shut down four times this year for maintenance, which is unusually frequent for a facility of its age. Regarding its maintenance schedule, the corporation has often refused to discuss.

In response to recent employee layoffs, Devakumar stated that the business had recorded 22 instances of sabotage, including attempts to set fires and tamper with machinery. According to him, damage was avoided by the refinery’s automated control systems and fire protection.

“There were attempted fire incidents — we have the dates and units documented,” he stated. “Some tried to break down instruments, but the system overruled them.”

Sabotage is rare among indigenous refineries, according to the Crude Oil Refinery Owners Association of Nigeria, a trade body representing domestic refiners. Nigeria’s state-owned refineries remain mothballed due to years of corruption and mismanagement.