Nigeria's Dangote refinery is in discussions with Libya to secure crude oil for its 650,000 barrels per day (bpd) plant and is also exploring options to source oil from Angola.
Nigeria's Dangote refinery is in discussions with Libya to secure crude oil for its 650,000 barrels per day (bpd) plant and is also exploring options to source oil from Angola, according to a senior executive. This move comes as the refinery seeks to address challenges with domestic supplies, Reuters reported.
The long-awaited $20 billion refinery has been hailed as a transformative force for Nigeria and the energy sector across sub-Saharan Africa.
However, since the refinery began operations in January, it has faced difficulties in securing adequate crude supplies within Nigeria.
Despite being Africa's largest oil producer, Nigeria grapples with issues such as theft, pipeline vandalism, and low investment. As a result, Dangote has had to import crude from distant sources like Brazil and the United States.
"We are talking to Libya about importing crude. We will talk to Angola as well and some other countries in Africa," Dangote refinery senior executive Devakumar Edwin told Reuters.
He added that international traders and oil companies are among the largest buyers of Dangote's gasoil, much of which is being exported.
"The biggest offtakers are the two big traders Trafigura and Vitol and BP and, to some extent, even TotalEnergies. But all of them are saying they are taking it to offshore," Edwin said.
Traders and shipping data indicate that Dangote is ramping up gasoil exports to West Africa, capturing market share from European refiners.
Edwin stated that Dangote's oil trading arm is now operational, with staff based in London and Lagos, to manage supplies and sell products. Reuters first reported on the planned trading arm in March.
Nigeria's Midstream and Downstream recently claimed that the sulphur content in its gasoil exceeds the required limit of 200 parts per million (ppm). However, Dangote refuted claims that petroleum products from his refinery are substandard.
Dangote recently revealed plans to list the fertilizer and petrochemical divisions of the Dangote Refinery on the stock exchange in the first quarter of 2025.
The refinery was recently ranked above Europe's 10 largest refining facilities.
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