Dangote Refinery Moves To Import Crude Oil From Brazil – Report—-Dangote Petroleum Refinery is gearing up to import a shipment of crude oil from Brazil, according to a recent Bloomberg report.
This move adds to the substantial volume of overseas crude oil that the Nigerian company has been bringing in.
Local crude oil refiners, including Dangote and several modular refineries, as well as domestic crude producers, have frequently voiced their concerns over Nigeria’s low crude oil output.
Despite efforts by the Nigerian Upstream Petroleum Regulatory Commission to address this issue, the country’s oil production remains insufficient.
This shortfall has made it challenging for local refineries to source crude oil, as much of Nigeria’s production is allocated to pre-existing contracts with international oil companies and the Nigerian National Petroleum Company Limited.
Bloomberg, citing traders familiar with the situation, reported that the Dangote refinery, which is still in the process of ramping up to full capacity, is set to receive a shipment of one million barrels of Tupi crude from Brazil in the latter half of next month.
The report highlighted that the refinery, seen as crucial to reducing Nigeria’s reliance on imported fuel, has already acquired millions of barrels of American crude oil. The choice of non-Nigerian crude appears to be driven by competitive pricing and suitability for the refinery’s needs.
The Brazilian crude was sold by Petrobras, a state-owned multinational corporation, according to the traders. Bloomberg noted that representatives from both Dangote and Petrobras did not immediately respond to requests for comment.
Citing data from Brazil’s commerce ministry, Bloomberg mentioned that this marks the first instance of Brazil exporting oil to Nigeria. Additionally, Dangote refinery recently secured five million barrels of US crude, set for delivery in the coming months.
Earlier this year, it was revealed that the refinery plans to import 24 million barrels of US crude over the next year.
Meanwhile, modular refiners have indicated that crude imports will continue until Nigeria’s production can meet both domestic and export demands.
