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As part of its continuous drive to amplify oil production and streamline refining operations, the Dangote Petroleum Refinery has once again turned to the United States for crude oil imports, reaffirming its role in reshaping Nigeria’s energy ecosystem.
Following a deliberate three-month hiatus in foreign crude oil imports, during which domestic sources were prioritized, this new purchase suggests a renewed interest in diversifying the refinery’s supply chain.
In a report published on Wednesday, Bloomberg detailed that Chevron Corporation has arranged for the shipment of two million barrels of WTI Midland crude, which is set to be delivered to the refinery next month, highlighting the continued reliance on high-quality imported crude.
The situation may signal that the Federal Government’s naira-for-crude initiative is experiencing difficulties or that the refinery is grappling with inadequate crude shipments from the Nigerian National Petroleum Company Limited, potentially affecting its operational capacity.
“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.
According to tanker scheduling data reviewed by Bloomberg, Chevron secured the services of the supertanker Azure Nova to carry a cargo of crude oil from the US Gulf, with loading anticipated to commence around December 5 and destined for the Dangote refinery.
Throughout the first part of the year, Dangote’s supply strategy included consistent imports of US crude, with one or two supertankers arriving monthly alongside its utilization of locally sourced crude oil.
However, these imports were reduced around August following an agreement with the federal government that the NNPCL would supply crude oil to the refinery in naira rather than dollars.
The agreement stated that the refinery would take up to 400,000 barrels a day of Nigerian crude paid for in local currency.
Read also: NNPCL Asks Court To Strike Out Dangote Refinery’s Import Suit
Dangote is taking a growing role in US and European oil markets, after gradually raising purchases of crude from Nigeria and the US.
The plant’s pull on those barrels increases the competition for the oil faced by traditional buyers in Europe.
The report added that reasons for the return to US imports remain unclear, though a report from Sparta Commodities earlier this week suggests lower shipping costs may have made US oil more affordable in Europe recently.
According to reports the refinery was seeking to raise billions of dollars to import crude oil and increase production.
The report said the Chairman of Dangote Group, Aliko Dangote, was in concrete talks with commercial lenders, development banks, oil traders, and other industry participants to raise funds for crude supplies to turn into refined products.
In what analysts are interpreting as a pivotal moment for regional energy trade, the refinery on Tuesday began shipping refined petroleum products to West African markets, a move that could signal the start of significant shifts in the area’s fuel economy.
To approach its optimal processing capabilities, the refinery must secure a minimum daily supply of 300,000 barrels of crude oil, according to details highlighted in the report.
