Dangote units to purchase 12m barrels of crude oil from United States for refinery operations

The Dangote Petroleum Refinery is awaiting as much as 12 million barrels of crude oil from the USA.

The refinery resorted to crude importation as native provide challenges hindered the brand new $20bn refinery’s push to achieve full refining capability.

Recall that the refinery plans to achieve its 650,000 barrels per day capability in June this 12 months.

Nonetheless, low native crude provide from the Nigerian Nationwide Petroleum Firm Restricted is presently a problem to this plan to ramp up day by day manufacturing.

The 12 million barrels of crude has already left the USA and can land in Nigeria subsequent month, in response to the information from African Report.

“About 12 million barrels of crude have departed the US and may arrive in Nigeria by February,” an insider supply instructed The Africa Report.

Dangote Petroleum Refinery is alleged to be importing extra crude oil as provide from the NNPC turns into inadequate for gasoline manufacturing on the $20bn Lekki-based facility.

Officers on the plant mentioned the ability has ramped up manufacturing to about 500,000 barrels per day, with the goal of hitting the 650,000bpd mark by June this 12 months.

The NNPC is reportedly struggling to provide 350,000bpd to the Dangote refinery from the 450,000bpd crude meant for Nigeria’s native consumption.

With its present manufacturing capability of 500,000bpd, officers mentioned there’s a have to look past the shores of Nigeria for the feedstock.

It was mentioned that the feedstock wanted by the refinery day by day can’t be solely provided by the state-owned oil firm, NNPC.

Recall that in July, President Tinubu ordered the NNPC to promote crude oil to native refineries in naira.

In accordance with the crude oil manufacturing forecast of manufacturing oil corporations and the refining requirement of useful refineries in Nigeria signed by the Chief Government of the Nigerian Upstream Petroleum Regulatory Fee, Gbenga Komolafe, the Dangote refinery would require 550,000 barrels of a mix of Nigerian crude oil day by day, 17.05 million barrels month-to-month, and 99.55 million barrels between January and June 2025.

The Dangote refinery is already constructing eight extra tanks to retailer imported crude. The ability is planning to stockpile imported crude oil as native provides turn into unreliable.

Officers of the refinery have been quoted as saying that low crude provide from the NNPC “is driving import dependence.”

The constructing of eight further tanks will see crude storage capability on the refinery bounce by 41.67 per cent to three.4 billion litres.

“Importing crude from different international locations as a substitute of shopping for domestically implies that our crude stockpiles should be increased,” the Vice President in command of the oil and fuel enterprise at Dangote Industries, Devakumar Edwin, was quoted as having mentioned lately.

In Might 2024, the refinery reportedly issued a time period tender for the acquisition of two million barrels of West Texas Intermediate Midland crude month-to-month for 12 months beginning in July final 12 months, amounting to 24 million barrels of crude in a single 12 months.