Nigeria Dangote Refinery Turns to Brazil for Crude Amid Supply Struggles

Dangote Refinery turns to Brazil for crude imports amidst Nigerian supply challenges, sourcing one million barrels of Tupi crude. Significant overseas purchases aim to support full-scale operations amid higher crude prices.

The Dangote Refinery, which processes 650,000 barrels per day, is seeking crude oil imports from Brazil due to supply challenges in Nigeria. Bloomberg reports that the Nigerian refinery, worth $20 billion, is importing significant amounts of overseas crude. According to traders, the refinery will receive one million barrels of Brazil's Tupi crude next month. This follows purchases of millions of barrels of American crude, reflecting the most competitively priced cargoes available.

Recently, the refinery secured five million barrels of US crude for delivery next month and in September. Earlier in May, it planned to purchase 24 million barrels of US crude over the year. The refinery faces allegations from Dangote Refinery that International Oil Companies are selling crude at higher prices, impeding full-scale operations. Despite these hurdles, the refinery aims to reduce Nigeria’s reliance on foreign fuel and plans to start supplying fuel locally by mid-July 2024. The refinery has yet to comment on these developments.