Dangote Petroleum Refinery has criticised the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) for directing its members to cut crude oil and gas supplies to the refinery.
In a statement, the private crude oil refiner based in Lagos described this directive as an economic sabotage and criminal, warning it could plunge Nigerians into fresh rounds of fuel scarcity while inflicting huge revenue losses on the government.
It emphasised that starving the $20 billion refinery of crude oil and gas would disrupt the production and nationwide supply of critical petroleum products, including petrol, diesel, aviation fuel, kerosene, and cooking gas.
“The products that would be disrupted and stopped include but are not limited to aviation fuel, petrol, kerosene, diesel and cooking gas – all products that are used and required by all stripes of Nigerians and persons living in Nigeria, whether high and mighty or lowly and ordinary.
“In what circumstance would it be justified for PENGASSAN to so disrupt and introduce insufferable hardship into the living conditions of Nigerians? None that we can see.
“The follow up question is, in whose interest and on whose behalf is PENGASSAN directing and intending to inflict such anarchic and criminal disruption upon the Nigerian society and persons living in Nigeria? Most certainly, not in the interest of the Nigerian State and/or the Nigerian public and citizens,” the statement said.
“This is also economic sabotage against the Nigerian State at multiple levels. Dangote Refinery is the only refinery of its type in Africa and ordinarily should be the pride of all Nigerians as well as the governments of Nigeria. It should ordinarily have special protection and status and indeed qualifies as a strategic national asset,” it added.
Dangote Refinery said the group’s directive constitutes a national embarrassment to the country and a disincentive to external investors who ordinarily would have been encouraged by the success of the oil facility to contemplate investing in Nigeria’s oil and gas sector or generally.
“PENGASSAN may also not be aware that Dangote Refinery is one of the largest contributors to the revenue purse of the Nigerian governments – both federal and sub-nationals. That contribution is currently threatened by PENGASSAN and would of course be paused if and as soon as and for as long as the PENGASSAN directive is implemented by its branches,” it noted.
Dangote Refinery stated that PENGASSAN had no legal authority to interfere in supply contracts between the refinery and its vendors, insisting that the action undermined the rule of law.
“Absolutely no law gives PENGASSAN the right to direct its branches to cut off gas and crude oil supplies to Dangote Refinery or at all. There is also no law in our statute books that would support or enable the PENGASSAN branches having to cut off gas and crude oil supplies to Dangote Refinery or at all.
“Besides, it constitutes a criminal conduct for PENGASSAN or its members to disrupt and/or interfere howsoever in the contract between Dangote Refinery and its various vendors for the supply of gas and crude oil to the Refinery.
“Those supply contracts were not entered into with PENGASSAN; they were entered into by Dangote Refinery with third party vendors and suppliers and PENGASSAN has no right whatsoever to disrupt and/or interfere with the performance of those contracts,” it noted.
Calling on the federal government and security agencies to act swiftly, the refinery urged Nigerians to take note of the “unquantifiable and irredeemable hardship which PENGASSAN wishes to inflict on all of us” if not checked, warning that fuel queues, energy shortages and price hikes could quickly resurface.
It urged PENGASSAN to submit to amicable and legal resolution and not resort to economic sabotage and mob action that could introduce mayhem and chaos and easily translate into anarchy.