The Dangote Petroleum Refinery has resumed purchasing crude oil from the United States, signaling efforts to ramp up production and address refining capacity challenges.
According to a Bloomberg report, the refinery has secured a shipment of two million barrels of WTI Midland crude from Chevron Corp, set to arrive in December. This marks the end of a three-month hiatus in foreign crude purchases as the facility initially focused on domestic supply.
The development raises questions about the viability of the Federal Government’s naira-for-crude initiative, which aimed to secure 400,000 barrels per day of Nigerian crude for the refinery in local currency. It also suggests potential supply shortfalls from the Nigerian National Petroleum Company Limited (NNPCL).
Chevron reportedly booked the supertanker Azure Nova to transport the crude, a return to US imports after the refinery had scaled back such purchases in August. Earlier agreements had reduced foreign imports to prioritize local crude paid in naira.
The Dangote Refinery, a $20 billion facility with a capacity of 650,000 barrels per day, continues to make significant strides. This week, it began exporting refined petroleum products to West African markets, indicating its growing influence in the regional fuel trade.
Despite challenges, including initial resistance from international oil companies (IOCs) to supply crude, the refinery has emerged as a critical national asset. The Vice President of Oil and Gas at Dangote Industries, Devakumar Edwin, highlighted the refinery’s achievement, stating it succeeded where major oil giants like Shell and Chevron have not—building the world’s largest single-train refinery.
Senator Sadiq Umar, Chair of the Senate Committee on Trade and Investment, pledged legislative support for the refinery, describing it as a national project vital to Nigeria’s economic growth.
As the refinery seeks to raise additional funding from lenders and industry stakeholders, it requires a minimum of 300,000 barrels per day to achieve optimal capacity. This milestone could significantly alter fuel markets in Nigeria and the broader region.
