Dangote Refinery plans to import crude oil from Brazil, aiming to boost production and expand its supply chain. Read the full report.
Dangote Petroleum Refinery is preparing to receive a shipment of crude oil from Brazil, as reported by Bloomberg recently. This move will increase the amount of foreign crude oil that the Nigerian company has been importing. Despite efforts by the Nigerian Upstream Petroleum Regulatory Commission to address the issue of low oil production in the country, local refineries like Dangote, modular refineries, and domestic crude producers continue to express concerns.
The insufficient oil production in Nigeria has made it difficult for local refineries to procure crude oil, as a significant portion of the country’s output is already committed to existing contracts with international oil companies and the Nigerian National Petroleum Company Limited.
According to traders familiar with the situation, the Dangote refinery, which is still in the process of reaching full capacity, is expected to receive a shipment of one million barrels of Tupi crude from Brazil in the latter part of next month.
The refinery, considered essential in reducing Nigeria’s dependence on imported fuel, has already purchased millions of barrels of American crude oil. The decision to opt for non-Nigerian crude seems to be based on competitive pricing and suitability for the refinery’s requirements. The Brazilian crude was reportedly sold by Petrobras, a state-owned multinational corporation.
However, representatives from both Dangote and Petrobras did not respond immediately to requests for comment, as noted by Bloomberg. According to data from Brazil’s commerce ministry, this marks the first time Brazil is exporting oil to Nigeria. Additionally, Dangote refinery has recently secured five million barrels of US crude for delivery in the upcoming months. Earlier this year, it was disclosed that the refinery intends to import 24 million barrels of US crude within the next year.
