Dangote Petroleum Refinery is expanding its crude oil sourcing by importing a cargo of Brazilian crude, as reported by Bloomberg. This move comes amidst concerns over low crude oil output in Nigeria, affecting local refiners like Dangote refinery and modular refineries. Despite efforts by the government to increase oil production, the situation remains challenging.
The Nigerian firm is set to receive one million barrels of Tupi crude from Brazil, in addition to previous purchases of American crude. The competitive pricing and suitability of these non-Nigerian barrels are key factors in Dangote refinery’s procurement strategy. This latest deal with Petrobras marks Brazil’s first oil export to Nigeria.
With plans to purchase 24 million barrels of US crude over the next year, Dangote refinery seeks to address the gap between domestic demand and available local supply. Modular refiners emphasize the need for increased local production to reduce reliance on imported crude.
Overall, Dangote Petroleum Refinery’s diverse sourcing strategy reflects its commitment to enhancing Nigeria’s energy security and reducing dependence on foreign fuel.
Okechukwu, a journalist with Punch Newspapers, has 15 years experience covering various sectors including Energy, Finance, Agriculture, and more.