The Dangote Petroleum Refinery will receive a shipment of Brazilian oil, according to Bloomberg’s report on Friday.
This import will add to the Nigerian company’s already large amount of imported crude barrels from overseas.
Local crude oil refiners, notably the Dangote refinery, modular refineries, and indigenous crude producers, have regularly expressed worries over Nigeria’s poor crude oil production.
Despite the Nigerian Upstream Petroleum Regulatory Commission’s efforts to address this, the country’s oil output has remained insufficient.
This output shortage has made it difficult for local refiners to obtain crude, as the majority of locally produced oil is exported due to existing contracts with International Oil Companies operating in Nigeria and the Nigerian National Petroleum Company Limited.
Bloomberg reported that traders with insider knowledge indicated that the Dangote refinery, which is still increasing its capacity, is set to receive a shipment of one million barrels of Tupi crude from Brazil, expected in the latter half of next month.
“The refinery, billed as pivotal in ending Nigeria’s dependence on foreign fuel, has already snapped up millions of barrels of American crude,” the report stated.
The purchases of non-Nigerian crude are likely due to the competitive pricing and suitability of these cargoes. The traders noted that the cargo was sold by Petrobras, a state-owned Brazilian multinational corporation.
Bloomberg reported that officials from both firms did not immediately respond to calls for comment.
Citing data from Brazil’s commerce ministry, the publication noted that this marks the first time Brazil has exported oil to Nigeria.
Dangote refinery just acquired five million barrels of US crude, which will be delivered next month and in September.
In May, it was reported that the refinery planned to purchase 24 million barrels of US crude over the course of a year.
Modular refiners have also stated that crude imports will continue until Nigeria’s production capacity can meet both domestic and export demands.
