The Dangote Refinery, Africa’s largest oil refinery, is increasing its crude oil imports from international suppliers to complement its domestic deliveries as it ramps up operations.
The Dangote Refinery has a crucial role in Nigeria’s push for self-sufficiency in petroleum products and reducing reliance on imported fuel. As the facility nears full capacity, the refinery is now seeking crude oil imports to maintain production targets.
According to Bloomberg, the refinery has obtained over three million barrels of crude from the United States from the beginning of the month. Additionally, it has secured Angola’s Pazflor grade and Algeria’s Saharan Blend through a deal with Glencore Plc, highlighting its increasing dependence on international suppliers.
Dangote Refinery has faced challenges in securing sufficient local crude supplies, although it has a capacity of 650,000 barrels per day and surpassing the ten largest refineries in Europe. To tackle the issue, Aliko Dangote, chairman of Dangote Group, stated that the company will source crude oil from other African-producing countries to sustain its production levels.
Earlier this week, reports surfaced that the Nigerian National Petroleum Company (NNPC) had stopped its naira-for-crude deal with Dangote and other local refineries and sold all its crude oil in advance. The decision could elevate production costs, intensify pressure on the naira, and result in higher petrol pump prices.
Analysts at Energy Aspects Limited report that crude deliveries to the Dangote refinery have averaged 450,000 barrels per day over the past two weeks, an increase from the estimated 380,000 barrels delivered in January and February.
NNPC has refuted these claims, asserting that it is presently negotiating a new naira-for-crude deal with Dangote Refinery. Meanwhile, the refinery has already expressed concerns about NNPC’s shortcomings in fulfilling its supply commitments.
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