Dangote Refinery Seeks Crude Oil Deal with 2 African Nations

Dangote diversifies crude oil sources amid regulatory dispute...

Dangote Refinery to import crude oil from Libya and Angola amidst Nigeria's supply shortage. Aims to diversify supply chain and enhance production despite regulatory criticisms and disputes.

The Dangote Refinery has revealed plans to import crude oil from Libya and Angola to address a supply shortage in Nigeria. Devakumar Edwin, Vice President of Dangote Industry Limited (DIL), announced this on Sunday, July 21.

The refinery, with a capacity of 650,000 barrels per day, will also explore crude oil sourcing from other African countries to boost production at its facility, Edwin disclosed. This move aims to diversify the refinery's crude oil supply and mitigate the impact of the shortage in Nigeria.

Dangote Refinery has announced its intention to import crude oil from Libya and Angola to mitigate a supply shortage in Nigeria. This announcement was made by Devakumar Edwin, Vice President of Dangote Industry Limited (DIL), on Sunday, July 21.

The refinery, with a daily capacity of 650,000 barrels, plans to explore additional crude oil sources from other African countries to enhance production at its facility, according to Edwin. This strategic move aims to diversify the refinery's supply chain and ensure uninterrupted operations.

“We are talking to Libya about importing crude.

“We will talk to Angola, as well and some other countries in Africa,” Edwin said.

The move to import crude oil from Libya and Angola comes after Dangote Refinery's earlier attempts to secure supplies from the United States and Brazil. The refinery has been in the spotlight recently, following claims by Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), that its products fall short of quality standards.

The NMDPRA's criticism has sparked intense debate in the Nigerian media, putting the refinery under scrutiny. Despite this, Dangote Refinery is pushing forward with its plans to diversify its crude oil sources, aiming to enhance its production and output.

Aliko Dangote, Chairman of Dangote Group, has refuted the criticisms made by Farouk Ahmed, calling for an independent test to verify the quality of his refinery's products. This comes amidst a heated dispute with regulatory authorities in Nigeria and a bitter row with a key equity partner in the refinery.

In a surprising move, Dangote had earlier offered to surrender ownership of his multi-billion-dollar oil refinery to the state-owned Nigerian National Petroleum Company Limited (NNPCL), should the need arise. This proposal came as tensions escalated with regulatory authorities and a key equity partner, intensifying the ongoing dispute surrounding the refinery.

The $19 billion refinery, which finally began operations in 2023 after a 10-year construction delay, has a daily capacity of 650,000 barrels. Initially estimated to cost half that amount, the refinery aims to reduce Nigeria's dependence on foreign fuel imports, saving approximately 30% of the country's foreign exchange expenditure on imported goods. As Africa's largest oil producer, this project promises significant economic benefits for Nigeria.