Dangote refinery imports first UAE crude cargoes

The Dangote Petroleum Refinery has acquired two crude oil cargoes from the United Arab Emirates, marking its initial procurement of Middle Eastern crude. This diversification of feedstock sources comes as the refinery, with a capacity of 700,000 barrels per day, seeks to expand beyond its traditional reliance on Nigerian, African, and U.S. crude grades.

These purchases follow the resumption of oil exports from the Middle East, bolstered by an interim peace agreement between the United States and Iran that restored confidence in shipping through the Strait of Hormuz. The refinery, originally designed for Nigeria's light sweet crude, is broadening its crude slate as its operations intensify.

An agreement with the Nigerian National Petroleum Company guarantees the supply of 13 to 15 Nigerian crude cargoes monthly in naira, aiming to reduce the refinery's foreign exchange exposure. However, challenges with crude availability and operational issues at export terminals have prompted the refinery to seek external sources, according to its Chief Executive Officer, David Bird.

Dangote Refinery plans to double its processing capacity to 1.4 million barrels per day by the end of 2028. This expansion will enable it to process approximately 80% of Nigeria's recent daily crude oil production. Bird indicated the refinery's intention to incorporate heavier crude grades into its feedstock mix, potentially processing up to 30% Middle Eastern grades per train at the expanded capacity.

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We definitely want to heavy up the barrel. We will be in the crude blending game. So you can easily imagine at 1.4 million b/d we could process 30 per cent Middle Eastern grades on each train.