Dangote Refinery Eyes Crude Imports from Libya and Angola Amid Production Challenges
The Dangote Refinery in Lagos is actively negotiating with Libya and Angola to import crude oil for its 650,000 barrels per day (bpd) plant.
This development was revealed by Devakumar Edwin, Vice President of Dangote Industry Limited (DIL), in an interview with Reuters on Sunday.
The Dangote Refinery, which commenced operations in January, has been grappling with inadequate crude supplies from the Nigerian National Petroleum Corporation (NNPC) Limited.
Despite Nigeria being Africa’s largest oil producer, the country faces significant hurdles such as theft, pipeline vandalism, and low investment, all of which have hampered the refinery’s operations.
“We are talking to Libya about importing crude. We will talk to Angola as well and some other countries in Africa,” Edwin stated, highlighting the refinery’s efforts to diversify its crude sources.
The refinery has already resorted to importing crude from distant locations like Brazil and the United States to maintain its production levels.
Edwin also mentioned that international traders and oil companies are significant buyers of Dangote’s gasoil, with much of it being exported.
Key players like Trafigura, Vitol, BP, and TotalEnergies are among the largest off-takers, often redirecting the products offshore.
Recently, the refinery has found itself embroiled in a dispute with Nigeria’s oil regulatory bodies, particularly the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Farouk Ahmed, head of NMDPRA, accused the refinery and other local refineries of producing fuel with high sulfur content, reaching levels as high as 650 parts per million (ppm).
Ahmed also suggested that Aliko Dangote, CEO of the refinery, might be attempting to monopolize the industry, which he warned could jeopardize the country’s energy security.
In response, Dangote has invited regulatory authorities to inspect the plant in Lagos to verify the quality of their products.
In a recent interview with Premium Times, Dangote even proposed selling the refinery to the NNPC to dispel any concerns about monopolistic practices.
Located in the Lekki Free Zone near Lagos, the Dangote Refinery is one of the largest oil refineries globally.
It was established by the Dangote Group to meet Nigeria’s domestic demand for refined petroleum products, aiming to reduce the country’s reliance on imported fuel.
With a projected capacity of 650,000 barrels per day, the refinery is expected to transform Nigeria from an importer to a net exporter of refined petroleum products.
Additionally, it is anticipated to create thousands of jobs and stimulate economic growth within the country.
