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Dangote Oil Refinery in Nigeria Expands Sourcing to Include US Crude

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Dangote Petroleum Refinery
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Kokel, Nicolas
2/2/2024 5:59 AM

The Dangote Oil Refinery, Africa's largest refinery located in Nigeria, has made its inaugural purchase of crude oil from United States suppliers. This marks a significant diversification in the refinery's sourcing strategy. The facility boasts the capability to process various grades of oil, including those sourced from the US, alongside feedstock from Saudi Arabia. With a projected capacity of 650 thousand barrels per day (bpd), the refinery aims to achieve full operational capacity within the current year, as reported by Bloomberg.

The decision to procure feedstock from the US is likely influenced by competitive pricing, although the logistics of transporting crude from the US to Nigeria must be considered. While West Texas Intermediate (WTI) may offer cost advantages over locally produced grades, transportation costs could impact overall profitability.