- Dangote Refinery, Africa's largest oil refinery, is set to purchase a new shipment of crude oil from the United States
- The purchase is part of the refinery's efforts to increase production of fuel and diesel to meet Nigeria's domestic demand
- The demand for foreign crude oil will further position the Dangote refinery to play a role in the international markets
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Dangote Petroleum Refinery, established by Africa's richest man, Aliko Dangote, is preparing to import crude oil from the United States in the coming months.
Bloomberg reports that the Dangote refinery plans to purchase at least 24 million barrels of US crude oil over the next year.
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Punch reports that this will help increase the refinery processing capabilities by 650,000 barrels per day.
Details of Dangote refinery buying US crude
According to the report, the Dangote refinery has issued a term tender to buy two million barrels per month of West Texas Intermediate Midland crude for a year starting in July.
The tender will close at 3 p.m. on May 21.
The report stated:
“The plant, built by Africa’s richest man, Aliko Dangote, issued a so-called term tender for the purchase of two million barrels a month of West Texas Intermediate Midland crude for 12 months starting in July, according to a document seen by Bloomberg. The tender closes on May 21."This is not the first time Dangote has looked at the US market to buy crude
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In an earlier report, Legit.ng revealed that Dangote bought crude in the United States to start production.
NUPRC gives oil firms strict orders on Dangote
Legit.ng reported that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) ordered oil companies in Nigeria to supply about 483,000 barrels of crude oil daily to local refineries for the next six months beginning January 2024.
The initiative is part of Nigeria's efforts to ensure regular supply to local refiners for domestic consumption.
About six local refineries, including Nigeria's three refineries in Port Harcourt, Warri, and Kaduna, are expected to begin production in 2024.
Source: Legit.ng
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