Nigeria's Modular Refineries Shun Domestic Crude Over High Costs
Nigeria's Crude Oil Refinery Owners Association of Nigeria (CORAN) has spoken out against the high costs associated with domestic crude oil, citing 'unrealistic commercial terms' and international pricing benchmarks.
The association's spokesman, Eche Idoko, explained that modular refineries typically purchase crude directly from producing assets and bear the cost of evacuating it to their facilities. However, when prices are quoted using international indices such as Platts, Brent, or West Texas Intermediate (WTI), it makes crude too expensive for these refineries.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) allocated 68.1 million barrels of crude oil to Dangote Petroleum Refinery in the second quarter of 2026, but only 52.6 million barrels were accepted by the refinery, representing 78% of the volume offered.