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Dangote Refinery Faces Crude Supply Challenges Amidst IOC Concerns

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Dangote Refinery Faces Crude Supply Challenges Amidst IOC Concerns

Dangote Industries Limited has raised concerns over the difficulties it faces in securing crude supply for its 650,000-barrel-per-day refinery, attributing the challenges to international oil companies (IOCs). Despite commendations for the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its interventions and guidelines aimed at transparency, Dangote Group insists that IOCs are hindering direct access to locally produced crude.

According to DVG Edwin, Vice President of Oil & Gas at Dangote Industries, IOCs prefer to sell crude through their foreign agents, often at premiums above official prices set by NUPRC. Edwin highlighted instances where prices offered were significantly higher than market rates tracked by industry platforms like Platts and Argus.

“We have consistently faced hurdles when attempting to purchase crude directly from Nigerian producers,” Edwin stated. He further noted instances where Nigerian crude was sold to Asian markets before local refineries could secure allocations, complicating supply arrangements.

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Edwin emphasized the importance of implementing the Domestic Crude Supply Obligation guidelines as outlined in the Petroleum Industry Act (PIA), advocating for fair pricing and direct transactions between local refineries and crude producers.

Despite these challenges, recent engagements between Dangote and Nigerian authorities, including the Nigeria National Petroleum Company Limited, have aimed to resolve supply issues ahead of the refinery’s anticipated petrol production launch in August 2024.

The Nigerian government, through NUPRC, has mandated monthly price quotes from oil refiners to ensure transparency and fair dealings under market-determined pricing systems. Meanwhile, the Crude Oil Refiners Association of Nigeria (CORAN) has echoed concerns over IOCs’ indirect sales practices and expressed optimism that ongoing government interventions will rectify the situation.

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As discussions continue between stakeholders, Dangote Industries remains hopeful for a sustainable resolution that supports local refining capabilities while aligning with regulatory frameworks.

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Iceland Demands Supermarket Rivals Stop Selling Prawn Rings

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Iceland Demands Supermarket Rivals Stop Selling Prawn Rings

Supermarket chain Iceland has filed a trademark application for its well-known “King Prawn Rings,” urging rival supermarkets to stop selling similar products. Iceland, headquartered in Flintshire, claims it has faced increasing imitation since introducing its prawn rings in 1991.

In a bold open letter shared on social media platform X (formerly Twitter), Iceland called out major competitors Aldi, Tesco, Lidl, and Asda, accusing them of selling “copy crustaceans.” The letter cheekily asserted, “The King Prawn Ring is ours, and we won’t be letting you off the hook.”

Lidl humorously responded, “Here was us thinking it was a classic 1970s party dish.”

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Iceland’s letter, signed by “Iceland Foods,” warned other retailers to cease selling prawn rings, especially ahead of Christmas. The chain emphasized its intent to pursue legal action if competitors don’t comply, declaring, “Our lawyers are more than ready to dive into legal waters.”

The prawn ring battle has sparked social media buzz, with consumers eagerly watching how rival supermarkets will respond to Iceland’s trademark claim.

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Boeing Workers Reject Latest Pay Offer Despite 30% Rise, Union Says

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Boeing Workers Reject Latest Pay Offer Despite 30% Rise, Union Says

The union representing striking Boeing workers has stated that its members are not interested in the company’s latest pay proposal, which includes a 30% raise over four years. According to the International Association of Machinists and Aerospace Workers (IAM), a survey revealed overwhelming dissatisfaction with the offer, labeling it as “inadequate.”

This rejection follows Boeing’s new “best and final” offer, which also included a performance bonus reinstatement, improved retirement benefits, and a one-time $6,000 signing bonus. The company set a deadline for the deal to be ratified by union members by midnight on September 27.

However, IAM criticized Boeing for sending the offer directly to workers and the media without consulting union leaders and stated that the time frame was insufficient to organize a proper vote. Boeing has denied the union’s claims and said it would allow more time and provide support to facilitate the vote.

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China Unveils Bold Measures to Revive Economy Amid Growth Concerns

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China Unveils Bold Measures to Revive Economy Amid Growth Concerns

China’s central bank, the People’s Bank of China (PBOC), has launched a significant package of measures aimed at revitalizing its struggling economy. PBOC Governor Pan Gongsheng announced plans to lower borrowing costs and allow banks to expand lending to stimulate economic activity.

With recent economic data raising concerns that China may miss its 5% growth target this year, the central bank will cut the reserve requirement ratio (RRR)—the amount of cash banks must hold in reserve—by half a percentage point, releasing around 1 trillion yuan ($142 billion) into the economy. Additional cuts may follow later in the year.

The package also addresses China’s property market crisis by cutting interest rates for existing mortgages and reducing minimum down payments for all homes to 15%.

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Asian stock markets responded positively to the news, seeing a boost after Mr. Pan’s announcement, which came during a rare joint press conference with officials from two other financial regulators.

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