Dangote Refinery to Procure 24 Million Barrels of Crude Oil from the US

Dangote Refinery is set to acquire a substantial amount of crude oil from the United States over the next year to bolster its processing operations.

According to a recent report from Bloomberg, the refinery has initiated a “term tender” to secure two million barrels of West Texas Intermediate (WTI) Midland crude per month, totaling 24 million barrels over 12 months, starting from July.

The tender, slated to close on May 21, underscores Dangote’s growing influence in global crude and fuel trading, while highlighting Nigeria’s ongoing challenges in meeting its own crude production targets.

Nigeria has struggled to meet its quotas set by the Organisation of Petroleum Exporting Countries (OPEC), with April’s production of about 1.45 million barrels per day falling short of its estimated capacity of 2.6 million barrels per day. Factors such as crude theft, aging infrastructure, low investment, and divestments by major oil companies operating in the nation have contributed to this decline.

Dangote Refinery, currently operating at around half its capacity, is seizing the opportunity to tap into cheaper US oil imports, which account for up to a third of its feedstock. Since the beginning of the year, the refinery has been receiving monthly shipments of WTI Midland crude, with each supertanker carrying approximately 2 million barrels.

While officials at Dangote declined to comment on the matter, it comes amidst recent developments in Nigeria’s oil industry. On April 15, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) proposed new regulations requiring oil producers to prioritize selling crude to domestic refineries before fulfilling foreign demands.