Dangote Refinery in Lagos is currently in negotiations with Libya to import crude oil for its expansive 650,000 barrels per day facility as it ramps up production.
Vice President of Dangote Industry Limited, Devakumar Edwin, disclosed this information to Reuters, an American-based media outlet, on Sunday.
Due to challenges in securing adequate crude supplies within Nigeria since commencing operations in January, despite Nigeria being Africa’s largest oil producer, the refinery has been compelled to import crude from as distant as Brazil and the United States. Edwin emphasized that discussions are underway with Libya and Angola, among other African nations, to bolster their crude oil supply.
In addition to addressing crude procurement, Edwin highlighted the refinery’s robust gasoil export to international traders and oil companies. “The biggest off-takers are the two big traders Trafigura and Vitol and BP and, to some extent, even TotalEnergies. But all of them are saying they are taking it to offshore,” Edwin stated, underscoring the refinery’s significant role in the global oil trading market.
Recent developments have also seen Dangote Refinery embroiled in disputes with Nigerian oil regulatory bodies, particularly the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The head of NMDPRA, Farouk Ahmed, accused Dangote Refinery and other local refineries of producing high sulfur content products, up to 650 parts per million (ppm), and raised concerns about potential monopolistic practices by Aliko Dangote, CEO of the refinery.
In response to these allegations, Dangote challenged the regulatory authorities to inspect the refinery’s operations in Lagos to verify the quality of their products, asserting that they meet the highest standards in Nigeria. Additionally, Dangote announced the suspension of plans to invest in Nigeria’s steel industry to avoid perceptions of monopolistic behavior, citing advice from the board of his conglomerate.
The Dangote Refinery, situated in the Lekki Free Zone near Lagos, is among the world’s largest oil refineries, initiated by the Dangote Group to meet Nigeria’s domestic demand for refined petroleum products and reduce reliance on imports.
With a projected daily capacity of 650,000 barrels, the refinery aims to transform Nigeria into a net exporter of refined petroleum products, contributing significantly to the country’s economic growth and energy security.
