The Dangote Petroleum Refinery has resumed purchasing crude oil from the United States, signaling efforts to ramp up operations and enhance its refining capacity. This marks the end of a three-month pause in foreign crude imports as the refinery previously prioritized domestic supply under an agreement with the Federal Government.
According to a Bloomberg report, the refinery recently acquired two million barrels of WTI Midland crude from Chevron Corporation. The shipment is expected to arrive in December aboard the supertanker Azure Nova, which was booked to load the crude from the U.S. Gulf Coast.
“Dangote refinery purchased its first shipment of US oil after a hiatus of three months as the site continues to ramp up production.
“The plant purchased about two million barrels of WTI Midland crude from Chevron Corp,” the report said.
Earlier this year, Dangote Refinery regularly imported U.S. crude alongside Nigerian supplies. However, imports were scaled back in August after an arrangement with the Nigerian National Petroleum Company Limited (NNPCL) allowed the refinery to procure up to 400,000 barrels per day of Nigerian crude, paid for in naira instead of dollars.
The reasons for the renewed U.S. crude imports remain unclear. Analysts speculate that falling shipping costs may have made U.S. crude more cost-effective for the refinery. This development also coincides with reports of the refinery seeking substantial funding from lenders and oil traders to maintain a steady supply of crude for processing.
Meanwhile, the refinery has started exporting refined products to neighboring West African countries, with diesel and aviation fuel already in circulation. Premium motor spirits (PMS) production began in September following disputes with international oil companies (IOCs) over crude supply.
During a recent visit by the Senate Committee on Trade and Investment, the Vice President of Oil and Gas at Dangote Industries, Devakumar Edwin, highlighted the refinery’s achievement as the world’s largest single-train facility, a feat no IOC has accomplished. Senator Sadiq Umar assured the refinery of legislative support, emphasizing its significance as a $20 billion national asset.
