The 650,000 barrel-per-day Dangote refinery is turning to Brazil for crude oil imports amid challenges with product availability in Nigeria, according to a recent Bloomberg report.
The report highlights that the Nigerian $20 billion indigenous refinery is increasingly importing overseas barrels of crude feedstock. Traders with knowledge of the matter indicated that the refinery, which is still ramping up to full capacity, is set to receive a shipment of one million barrels of Tupi crude from Brazil in the second half of next month.
“Billed as pivotal in ending Nigeria’s dependence on foreign fuel, the Dangote refinery has already secured millions of barrels of American crude,” Bloomberg reports. The publication notes that these purchases of non-Nigerian barrels likely reflect the most competitively priced and suitable cargoes.
As of the time of reporting, the Dangote refinery had not officially responded to inquiries regarding this development.
On July 11, 2024, the refinery purchased five million barrels of US crude, scheduled for delivery next month and in September. Similarly, in May, the refinery planned a purchase of 24 million barrels of crude from the US over the course of a year.
This development comes amid allegations from the Dangote Refinery that International Oil Companies are hampering its full-scale kickoff by selling crude at higher prices. The company had previously announced plans to commence fuel supply in Nigeria by mid-July 2024.
No comments:
Post a Comment