3 months ago
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- The Dangote refinery has begun talks with Libya to import crude oil from the country
- Devakumar Edwin disclosed that talks are ongoing with the North African country and Angola to secure crude
- The Dangote Refinery has been in a row with regulatory authorities over reported high sulphur content in its diesel
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Dangote refinery is in talks with Libya to secure crude oil for the 650,000 barrels per day facility and is also exploring options to source crude from Angola.
Legit.ng earlier reported that the refinery seeks to import crude from three African countries: Libya, Senegal and Angola.
Source: Facebook
Dangote to import crude from African countries
The development comes as the refinery moves to address challenges with domestic supplies.
The $20 billion refinery has been touted as a transformative force for Nigeria and the energy sector in Sub-Saharan Africa.
Reuters reports that the refinery began production in January this year and has faced challenges sourcing crude supplies within Nigeria, Africa’s largest oil producer.
Nigeria grapples with oil theft, pipeline vandalism, and low investment.
Due to the challenges, Dangote has relied mostly on crude from other countries, such as Brazil and the United States.
Dangote names biggest buyers of its diesel
Devakuma Edwin said the company is talking to Libya to import crude and will also speak to Angola and other African countries.
He said:
"We are talking to Libya about importing crude. We will talk to Angola as well and some other countries in Africa,"According to Edwin, international traders and oil firms are among the largest buyers of Dangote’s diesel, mainly exported.
He disclosed that Trafigugura, Vitol, BP and TotalEnergies are the company's biggest buyers.
Reports say traders and shipping data show that Dangote is concluding plans to export diesel to West Africa, capturing market share from European refineries.
The Dangote executive stated that the refinery’s trading arm is operational, with staff based in London and Lagos, to manage supplies and sell products.
Dangote and NMDPRA’s beef
The refinery has been in a row with the Nigeria Midstream and Downstream Regulatory Authority (NMPDRA) over the sulphur level in diesel from the facility.
The NMDPRA said that products from the Dangote and other refineries are of inferior quality due to the high sulphur level.
Dangote, however, refuted claims that petroleum products from his refinery are substandard, saying that its products are 80% superior to imported ones.
Dangote management disclosed that the claim by NMDPRA chief executive officer Farouk Ahmed contained inaccuracies and was meant to destroy the firm’s reputation.
The refinery was recently ranked above Europe's 10 most extensive refining facilities.
Dangote speaks on the future of his proposed steel company
Legit.ng earlier reported that Aliko Dangote, president of the Dangote Group, has said the group will no longer invest in Nigeria’s steel industry to avoid the monopoly label.
The Nigerian billionaire disclosed this on Saturday, July 20, 2024, stating that the allegations of trying to monopolize businesses in Nigeria have become a significant discouragement.
On Thursday, July 18, 2024, the chief executive of Nigeria Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, said that the Nigerian government will not end the importation of petroleum products, saying that it cannot rely on the Dangote Refinery to feed the country.
Source: Legit.ng
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