All posts tagged in Crude Oil

LAGOS, Nigeria — The Dangote Petroleum Refinery has purchased two cargoes of crude oil from the United Arab Emirates, marking its first-ever procurement of Middle Eastern crude as it diversifies its feedstock sources amid persistent domestic supply constraints. According to a report by S&P Global Commodity Insights, the two cargoes represent the first crude supplies sourced by the 700,000-barrels-per-day refinery from a Middle Eastern supplier, signalling a shift from its traditional reliance on Nigerian, other African and United States crude grades. The report stated that the purchases followed the resumption of oil exports from the Middle East after the United States and Iran reached an interim peace agreement that restored confidence in shipping through the Strait of Hormuz. Designed primarily to process Nigeria's light sweet crude, the refinery has increasingly broadened its crude slate as it ramps up operations. S&P Global said an agreement between the refinery and the Nigerian National Petroleum Company Limited guarantees the supply of between 13 and 15 cargoes of Nigerian crude each month, with payments made in naira to reduce the refinery's exposure to foreign exchange fluctuations. However, the arrangement has faced setbacks due to inadequate domestic crude supply and operational challenges at export terminals. According to the report, Dangote Refinery Chief Executive Officer David Bird had previously disclosed that these supply constraints forced the company to source additional crude from outside Nigeria. The refinery's expansion plans are also expected to significantly increase its crude demand. Dangote aims to double the refinery's processing capacity to 1.4 million barrels per day by the end of 2028, a level that would enable it to process approximately 80 per cent of Nigeria's recent daily crude oil production. Speaking earlier this year, Bird said the refinery intended to increase the proportion of heavier crude grades in its processing mix. "We definitely want to heavy up the barrel," Bird said in April. He added that the refinery plans to become an active participant in crude blending as production capacity expands. "We will be in the crude blending game. So you can easily imagine at 1.4 million b/d we could process 30 per cent Middle Eastern grades on each train," he said. According to S&P Global, the refinery has continued to diversify the range of crude grades it processes as part of its strategy to operate as a fully merchant refinery. The report noted that in 2025, about 70 per cent of the refinery's crude imports originated from Nigeria, while 24 per cent were sourced from the United States, with the latest purchases from the United Arab Emirates marking a significant expansion of its global crude procurement strategy. Also Read: Oil Prices Fall 2%, Head for Weekly Losses as Hormuz Supply Concerns Ease

Advertisement

Advertisement

All posts tagged in Crude Oil

Get new posts by email:

Stay Informed With the Latest & Most Important News

Advertisement

Advertisement