Dangote refinery is preparing to import crude from the US in the forthcoming months, signalling the increasing competitiveness of American barrels in the global market.
This is according to reports from Bloomberg.
Traders’ familiar with the matter disclosed that Trafigura Group has sold 2 million barrels of WTI Midland to the Dangote refinery for delivery by the end of February. This marks the first time the refinery buying non-Nigerian crude.
The exponential growth in US oil supply over the past decade has reshaped the global market, extending its influence to regions like Asia. Nigeria, whose economy heavily relies on petroleum exports, is particularly impacted by these transatlantic deliveries.
The new 650,000 barrel-a-day oil refinery commenced operations earlier this month. Initially targeting a processing rate of 350,000 barrels per day, the refinery aims to gradually escalate production towards its full capacity.
While the refinery primarily sources domestic crude through a supply agreement with the trading arm of the state-owned NNPCL, it recently received its first shipment of Nigeria’s Agbami crude, facilitated by a trading unit of Shell. Subsequent deliveries included Nigeria’s Amenam, Bonny Light, and CJ Blend streams.
In addition to handling domestic feedstock, the recently inaugurated mega-facility is capable of processing various African crudes, along with supplies from distant sources such as the US and Saudi Arabia, as disclosed by the Dangote Group earlier this month.
Nigeria’s erratic crude oil production
- Nigeria has been battling shortage in crude oil production in the past few years occasioned by rising incidents of crude oil theft, divestment from oil majors and insecurity across the Niger Delta.
- In recent times, Nigeria has failed to meet its OPEC production quota of 1.75 mbpd for 2023 necessitating the oil cartel to cut its production quota for 2024. Perhaps, Nigeria’s erratic crude oil production levels might be responsible for Dangote refinery to look elsewhere for consistency in crude oil supply.
Import und Finish uns mit crazy Preis……Thats the Motive. 1200/1
The question ⁉️ is can this fuel ⛽⛽⛽⛽ price ever go down 👇!.
I am really confused! It means Nigeria will import crude oil. Me I no understand. Someone should explain to me, possibly in Fulfilde. I am Fulani Ba turenci.
Nigeria will buy crude oil from the USA, then send back refined products like diesel, petrol, and jet fuel to the USA and other places. This is just like what happens in other countries. For example, Nigeria sends crude oil to the Netherlands and gets petrol back for use at home.
This is a positive step. It shows Nigeria is doing more than just selling crude oil. Now, Nigeria is also making petrochemical products to sell to other countries or use at home.
The questions are ..if Nigerian crude is not enough for local production..and why Nigeria should export crude now it has the local capacity to refine its oil.
There’s no case of Saudi importing crude from other countries.
That’s a very good question. If we don’t have adequate supplies of crude to our local refinery, why do we have to still export crude to other countries. Let’s meet our domestic needs first before we think of selling out.
Ibrahim. It can get confusing. Our market and country is very volatile . Basically dangite will import yes but Nigeria local production is the main source . The US importation is a back up. To make sure any wagala locally they are covered . No time to explain any long story to lenders and off takers
That is the dubious attitude we’re talking about, I don’t believe it this is not really, if he import from US is better for him to sell it back to them, because Icf you refuse to follow us buy market we will also reject your market, do me I do you GOD no dey vex.
What a shame! If refined crude can no more be brought in because we have a great new plant to produce it, the saboteurs want to import the crude for it to work, because ‘business’ must go on as usual!
Like I don’t understand how you import what you have.its crazy.The importation automatically increases the price of products and potentially every other goods in Nigeria.its sad.really sad
They are doing everything in their minds to either increase or maintain the current price of fuel in the country, they don’t believe in reducing the fuel price for you and me.. Dangote has never been customer friendly in their business, remember how BUA cement reduced the factory price of cement but because of dangote and others like him the reduction is not making sense to the consumer. I never had any trust in this dangote refinery but I have a question, abeg where is the money CBN and NNPC invested in this dangote refinery? What is our stake in this refinery?
The crude oil will be imported from United State of Niger Delta …….you can’t fool everyone
Nigeria is a joke,expect the pms to soar to 970 per litre.
Professional thieves are starting the stealing games America does not export their crude refining outside lies and then bring back, we are not stupid,
Bobo Guise; so of all the places, it is the US you saw fit to buy crude oil from? What of Saudi Arabia or Russia or Qatar I mean places you can actually get crude more affordably? Is this why Antony Blinken came here? Dangote, please don’t further strangle us by wasting Nigeria’s so badly needed USD
Thos is fallacy, a front to set the target retail price of their products with higher profit margin. Sangote refinery does not require any crude import from anywhere. The Americans per say are importing our sweet crude…even UAEimports our sweet crude to mix whatever crude they bought elsewhere or produced in their cou try because Nigerian crude is the best with low sulfur.
For those who dont know how crude oil business works in Nigeria, just as you have Forex official will dow and black market BDC operators, Nigeria have OPEC quota officially and also sell black market crude known as OFF OPEC.
Nigerian OPEC output quarter is 2m barrels which they end up accounting 1.8m or 1.6m as the case may be but our unofficial black market OFF OPEC quota is about 4m barrels daily.
Where do you think the likes of Deziani looted all their funds from? Not from the OPEC allocation which goes straight to national treasury but from the off OPEC which is sold via fiduciary accounts and cronies of the Govt of the day.
Nigeria has the capacity to supply Dangote with 1m barrels everyday via the off OPEC system but dangite group is bringing in foreign crude to help them peg their retail prices of finished products as high as Nigerians can choke with.
Typo error regretted
We have crude oil here in Nigeria and someone wants to import same crude from the US. Is that normal or what?
From this singular act, everyone in Nigeria will know that the Leadership is not OK.
THANKS
Even recently, news had it that Nigerian ships were garaged abroad searching for countries to purchase the country’s crude…for weeks, if not months…
Suddenly is importation of crude from US ..not even refining for US…or other countries.
Besides, why shouldn’t these oil coys secure their facilities and infrastructures.. like in telecom.. including meeting up with their environmental obligations…?
Best analysis of the current political situation in Dangote Refinery, more wisdom and knowledge to you sir
It is early to know the full shape of things to come because the government refineries are also coming up and need feeds. The NNPCL has some upfront payment commitment and obligations to meet. Our productions have been lower than optimum in recent years. Therefore, we need to monitor situation to see what happens as we go along. Clearly, it is best for us to feed all the refineries in Nigeria from local crude oil productions and this will help us to improve the value of Naira.
Exactly, we can’t be importing what we have. Doesn’t make any sense. Except Dangote refinery is not ready to support the Nigerian market. Rather it seem he is more concerned with his global position on the wealth chain.
Why on earth is Nigeria importing crude oil from United States,is the United States now a reservoir abi na tank farm for Nigeria???all this pipeline wey dey cross cross African countries to another,where are they going??? Nigeria is the Giant of Africa,but the masses are living in bondage by the same people that was sent to represent us.. education has collapsed,but their father is sending their children to Europe for the same education which they’ve collapsed with public funds, farmers are no more going to farm bcos of a tribal war…which way Nigeria..where are we heading to,.. United States selling crude oil to Nigeria… it’s unbelievable….
Then Nigerians must fight for their right to live in ease
Even if it will be ending this dubious democratic system that favors only western countries manifesto’s!