Dangote Refinery Secures Second US Crude Oil Shipment to Boost Operations

Dangote Refinery, Africa’s largest oil refinery situated in the outskirts of Lagos, Nigeria, has recently increased its stock of imported crude oil from the United States.

A second shipment of US light sweet crude oil embarked on its journey to Nigeria this Friday, marking a significant step in the refinery’s procurement strategy.

According to Reuters, the vessel named Otis, carrying approximately 850,000 barrels of WTI Midland crude oil from Houston, set sail last week with Lekki, Nigeria, as its destination.

The cargo, chartered by the global energy and commodities trading company Vitol, is expected to reach Nigeria by mid-March, as per tracking data from Kpler and LSEG.

This development follows the arrival of the first shipment comprising two million barrels of US crude on the very large crude carrier Gem No. 1, also chartered by Vitol.

The cargo is nearing Nigeria and is slated for discharge next week.

Dangote Refinery, constructed by Aliko Dangote, Africa’s wealthiest individual, is a state-of-the-art facility with a nameplate capacity of 650,000 barrels per day.

Since commencing its crude procurement in December last year, the Nigerian National Petroleum Corporation Ltd (NNPCL) has been the primary supplier of crude to the refinery.

In a recent development, the refinery issued tenders to sell two fuel cargoes for export, according to a tender document and sources familiar with the matter who spoke to Reuters.

In January, Bloomberg reported that Trafigura Group, a leading multinational commodity trading company, sold two million barrels of WTI Midland to Dangote Refinery for end-February delivery.

This transaction marked the refinery’s first purchase of non-Nigerian crude, signalling its openness to diversifying its crude supply sources to ensure uninterrupted operations.

Trafigura, with its global presence and expertise in the oil and petroleum products market, plays a pivotal role in facilitating the trade of crude oil to the Dangote Refinery.

As Dangote Refinery continues to ramp up its operations and expand its crude procurement strategy, it sets the stage for enhanced refining capacity in Africa.

This development not only solidifies Nigeria’s position in the global oil market but also represents a significant leap towards self-sufficiency in petroleum products for the continent.