Dangote Refinery acquires fresh 5m barrels of crude oil from US

By Adedayo Osho

Latest report from Bloomberg published on July 11, 2024, confirms the local refining company, Dangote Refinery has initiated a tender process intending to buy a further 6 million barrels of American crude for September.

According to the report, the refinery has purchased more than 16 million barrels of West Texas Intermediate crude oil since the beginning of this year.

Tenders for new supply in the report by Bloomberg suggests the proportion the company will purchase from the US in August and September may increase geometrically.

The report reads: "For Nigeria and Dangote, the use of US crude likely reflects where there are spare barrels available to buy in the world and the most competitive price."

It further stated that "The refinery has been billed as a way of helping Nigeria wean itself off foreign fuel supplies.

"The refinery near Lagos mostly runs on local crude supplies that can reach the plant from offshore terminals in as little as a couple of days."

The report also stated that tracking data indicates that the refinery took in more than 41 million barrels of feedstock in the first half of the year as it completed test runs and gradually raised processing rates.

Almost one quarter of the refinery's purchase were supplies from America.

With the latest purchase, Bloomberg said the inflows of American feedstock may increase significantly.

In May 2024, Dangote Refinery planned a purchase of 24 million barrels of crude from the US for for more than a year.