The Dangote Refinery and Petrochemical Company have ramped up crude oil imports from multiple international suppliers as it gradually scales up production.
This move comes amid the conclusion of the Naira-for-Crude agreement with the federal government, signaling a shift towards a more diverse crude procurement strategy.
Since the beginning of March, the refinery has reportedly received over three million barrels of American crude, alongside significant shipments from other international sources.
Industry analysts from Energy Aspects Ltd. have observed a steady increase in crude deliveries to the refinery.
According to their estimates, Dangote Refinery has averaged 450,000 bpd in crude intake over the past two weeks, up from an estimated 380,000 bpd in January and February.
“Our satellite monitoring shows a recent draw in crude stocks at the refinery, indicating that production runs are likely increasing,” said Randy Hurburun, a senior refinery analyst at the consultancy firm.
Once fully operational, the Dangote Refinery is expected to process 650,000 barrels of oil per day, making it the largest refinery in Africa and surpassing any single refinery in Europe.
The facility is anticipated to reach full production capacity by the first half of 2025.
Despite expanding overseas purchases, the Dangote Refinery remains heavily dependent on Nigerian crude.
According to tanker-tracking data compiled by Bloomberg, over ten million barrels of Nigerian crude were delivered to the refinery in February alone.
The Nigerian National Petroleum Company Ltd. (NNPCL) stated that it has supplied 48 million barrels of crude to Dangote Refinery since signing a crude supply agreement in October 2024.
The Naira-for-Crude initiative was designed to enable local refineries to pay for crude in Nigeria’s local currency, thereby reducing forex pressures on the economy.
Sources indicate that the first phase of the initiative has now ended, and NNPCL is in discussions with Dangote Refinery regarding a potential extension of the deal.
Industry experts believe that price competitiveness will play a crucial role in Dangote Refinery’s crude procurement strategy moving forward.