“This Is Criminal,” Dangote Reacts To Move By PENGASSAN To Cut Crude Oil, Gas Supplies

Dangote Petroleum Refinery has described move by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to cut crude oil and gas supplies to the refinery as criminal.
The company warned that such move could plunge Nigeria into fresh rounds of fuel scarcity while inflicting huge revenue losses on the government.
In a statement today, September 27, the refinery said that the move is not only criminal, but “reckless and an act of economic sabotage.”
It said that it would disrupt the production and nationwide supply of critical petroleum products, including petrol, diesel, aviation fuel, kerosene and cooking gas.
The company said that these products are indispensable to daily life and the economy, warning that Nigerians at every level, from households to businesses and industries would bear the brunt of shortages.
It said that a sudden disruption in supply will translate into insufferable hardship for millions of Nigerians.
“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 company said that apart from the immediate hardship on citizens, government’s revenue would be dented, given the refinery’s status as one of the country’s largest taxpayers and contributors to both federal and state coffers.
Dangote Refinery said that any pause in operations would stall contributions to the national purse and undermine investor confidence in Nigeria’s oil and gas sector.
“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 said that an irreparable injury to the Dangote Refinery such as PENGASSAN has directed constitutes a national embarrassment to the country and a disincentive to external investors who ordinarily would have been encouraged by the success of Dangote Refinery 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.”
The statement said 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 called on the Federal Government and security agencies to act swiftly, even as it advised 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 called on 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.