The Dangote Petroleum Refinery has resumed importing crude oil from the United States as part of its strategy to scale up production and enhance its refining operations. This marks a return to foreign crude purchases after a three-month focus on sourcing oil domestically. According to a report by Bloomberg, a shipment of two million barrels of WTI Midland crude from Chevron Corporation is set to arrive at the refinery in December. This development has sparked speculation about potential challenges with the naira-for-crude arrangement or insufficient crude supply from the Nigerian National Petroleum Company Limited (NNPCL).
The resumed imports highlight the refinery’s significant role in both domestic and international oil markets. Earlier this year, the refinery regularly imported one or two shipments of U.S. crude monthly while also relying on local crude supplies. However, these imports declined in August following an agreement with the federal government allowing the NNPCL to supply up to 400,000 barrels of crude daily, paid for in naira. Recent reports suggest that reduced shipping costs might have made U.S. crude more cost-effective, prompting the refinery’s return to international sourcing.
Efforts to enhance operations at the refinery are ongoing, with Aliko Dangote, Chairman of the Dangote Group, reportedly in discussions with financial institutions and industry partners to secure funding for crude oil purchases. The refinery requires a minimum daily supply of 300,000 barrels to maintain optimal capacity. Meanwhile, it has started exporting refined products to West African markets, signaling its potential to influence regional fuel dynamics. This comes as the refinery continues to expand its capacity, having introduced premium motor spirits to its output in September.
During a visit by the Senate Committee on Trade and Investment, Dangote executives highlighted the achievement of building the world’s largest single-train refinery in Nigeria—a feat that international oil companies like Shell and Chevron have never undertaken. The refinery, located in the Lekki Free Zone, began operations earlier this year and has faced challenges, including disputes over crude supply. Senate representatives pledged legislative support, emphasizing the project’s importance as a $20 billion national asset poised to strengthen Nigeria’s energy sector and economy.
