By Milcah Tanimu
Dangote Oil Refinery in Lagos plans to buy millions of barrels of US crude over the next year as it ramps up its processing capacity. A document seen by Bloomberg reveals that the refinery, established by Africa’s richest man, Aliko Dangote, has issued a term tender for purchasing 2 million barrels per month of West Texas Intermediate (WTI) Midland crude starting in July. The tender closes on May 21.
This move underscores the refinery’s significant role in global crude and fuel trading, even though it is located in Africa’s largest oil-producing nation. Once fully operational, it will be Africa’s largest fuel-making facility.
The decision to seek US crude highlights the competition Nigerian crudes face against American supply, as noted by a trader of West African barrels. An official from Dangote has yet to comment on the matter.
The Dangote refinery, situated in the Lekki Free Zone near Lagos, is a 650,000 barrels per day (BPD) integrated project expected to be the world’s largest single-train facility.
In March, the Nigerian government expressed concern over the potential embarrassment if local refineries, including those in Port Harcourt, Kaduna, Warri, Dangote, and BUA, fail to secure sufficient crude oil for production. Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, noted that these refineries might struggle to get enough local crude without a boost in national oil production .