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- The Dangote refinery has announced plans to import 11 million barrels of crude oil as it seeks to roll out petrol across Nigeria this month
- The refinery has placed a tender for five million barrels of West Texas Crude and an additional six million barrels for September
- The refinery management has accused international oil companies (IOCs) of inflating premium prices above international costs
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
Amid the challenges of crude oil production in Nigeria, Dangote has announced plans to purchase an additional 11 million barrels of crude oil from the US.
The refinery, expected to roll out petrol across Nigeria this month, has found it necessary to augment domestic supply with imports to meet its operational needs.
Source: UGC
Dangote refinery orders for 11 million barrels
According to a tender, the refinery bought five million barrels of West Texas Intermediate (WTI) Midland crude for delivery in August and September.
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The firm also began a tender process to purchase another six million barrels of American crude for September.
The facility runs mostly on local crude supplies that can reach the refinery from offshore terminals in a few days.
According to reports, the refinery took in over 41 million barrels of crude in the first half of 2024 as it completed test runs and slowly increased processing rates.
The refinery accuses oil firms of sabotage
Chairman of the Dangote Group, Aliko Dangote, said the refinery would continue to import crude from abroad as it seeks to ramp up production and seeks alternative supply contracts,
The refinery management had accused international oil companies (IOCs) and local oil firms of planning to sabotage its efforts by inflating premium prices, which led to the plant importing crude.
Reports say the refinery took delivery of WTI cargoes, or about nine million barrels, between February and May, in contrast with about 18 million barrels of Nigerian crude deliveries.
Nigeria’s crude oil production declines
OPEC data for June shows that Nigeria pumped about 1.28 million barrels daily, below its daily quota of 1.5 million.
The information is according to data from direct communication with Nigerian authorities. This is an increase of just 25,000 barrels daily from the 1.251 barrels per day recorded the previous month.
Nigeria remains Africa’s largest oil producer
However, secondary sources put Nigeria’s daily crude oil production in June at 1.362 million barrels, dipping by 10,000 from May’s record of 1.372 million barrels daily.
Despite the drop in production, Nigeria remained Africa’s largest oil-producing country, followed by Libya, which had 1.2 million barrels daily in June.
IOCs, producers get FG's order to supply Dangote, other refineries crude
Legit.ng earlier reported that the Nigerian government, through the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), has agreed with oil producers to allow the sale of crude oil to local refineries at market prices.
The agreement will end a supply dispute between local refineries and oil producers, including international oil companies (IOCs).
The oil producers, under the aegis of the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce Industry (LCCI) at the behest of the NUPRC, agreed to yield to a scheme that would mutually benefit both parties and focus on ensuring that local refineries are not starved and ripped-off.
Source: Legit.ng
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