Nigeria’s Dangote Refinery says crude inflow reduction driven by high prices, not faults

By Isaac Anyaogu

LAGOS (Reuters) -Nigeria’s Dangote Refinery said on Friday that recent reductions in crude oil inflows were a strategic response to elevated global prices, not the result of operational failures.

The company made the comments during a media tour aimed at addressing concerns over crude volumes and potential outages at the facility.

Edwin Devakumar, vice president of Dangote Industries, said the refinery was adjusting crude purchases based on price fluctuations and inventory levels.

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

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

He said the refinery, which began operations earlier this year, is designed for turnaround maintenance every five years, unlike older facilities that require more frequent shutdowns.

However, Reuters has recorded four separate shutdowns of the refinery’s gasoline unit this year for maintenance — an unusual frequency for a plant of its age. The company has typically declined to comment on its maintenance schedule.

Addressing recent staff dismissals, Devakumar said the company had documented 22 sabotage attempts, including efforts to start fires and tamper with equipment. He said the refinery’s fire protection and automated control systems prevented damage.

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

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

(Reporting by Isaac Anyaogu; Editing by Chijioke Ohuocha and Rod Nickel)

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