Dangote Refinery Attributes Crude Inflow Reductions to High Prices, Not Operational Issues

Nigeria’s Dangote Refinery clarified that recent declines in crude oil inflows are a strategic response to high global prices rather than operational failures. During a media tour intended to address concerns about crude volumes and potential outages, Edwin Devakumar, vice president of Dangote Industries, explained that the refinery is adjusting its crude purchases based on price fluctuations and inventory levels.

The 650,000-barrel-per-day facility, built by billionaire Aliko Dangote, has seen several maintenance rounds this year, impacting crude demand. Devakumar noted that while no factory operates at full capacity every day without issues, the key concern is whether these problems affect overall production.

Although the refinery began operations earlier this year, it is designed for turnaround maintenance every five years, unlike older plants that require more frequent shutdowns. However, there have been four separate shutdowns of the gasoline unit this year for maintenance, which is unusual for a facility of its age.

Addressing staffing changes, Devakumar revealed that the refinery had documented 22 sabotage attempts, including incidents aimed at starting fires and tampering with equipment. He assured that the facility’s fire protection and automated systems successfully thwarted these attempts. Notably, sabotage is uncommon among local refineries, especially as Nigeria’s state-owned facilities have remained inactive due to years of corruption and neglect.