Dangote Petroleum Refinery has resumed U.S. crude oil imports with a two-million-barrel shipment from Chevron, signaling challenges in its naira-for-crude agreement with the Nigerian government. As production ramps up, the $20 billion facility is poised to impact regional fuel markets and strengthen Nigeria’s position in global oil refining.
The Dangote Petroleum Refinery has resumed purchasing crude oil from the United States, securing a shipment of two million barrels of WTI Midland crude from Chevron Corp after a three-month hiatus. Scheduled for delivery in December, this move indicates challenges in the refinery’s naira-for-crude agreement with the Nigerian government, which aimed to secure local crude supplies.
The refinery, which initially relied on Nigerian crude supplied in local currency, paused its imports in August but has now resumed due to factors like insufficient local supply or reduced shipping costs for U.S. oil. This development comes as Dangote seeks funding from various sources to import more crude and expand operations. The refinery requires a minimum of 300,000 barrels per day to maintain production capacity.
In addition to refining and exporting products to neighboring countries, Dangote recently announced its entry into international oil markets. This positions the refinery as a significant player, potentially impacting traditional European buyers. The refinery's Vice President, Devakumar Edwin, highlighted the achievement of building the world’s largest single-train refinery, a feat unmatched by international oil companies like Shell and Chevron.
During a visit by Nigeria’s Senate Committee on Trade and Investment, lawmakers pledged support for the $20 billion project, emphasizing its importance to national economic growth. Operational since January, the refinery now produces various petroleum products, including premium motor spirit, diesel, and aviation fuel, with plans for increased exports across West Africa.
