Dangote refinery resumes crude oil imports from US

Dangote Petroleum Refinery has purchased its first shipment of US oil after a three-month break as the firm seeks to ramp up production. 

Speaking to TheCable on Wednesday, a source close to the development, said the refinery made such decision to ensure it runs effectively.

“It is a big refinery processing 650,000 barrels per day. Like it or not, it is normal to purchase crude from all over the world,” the source said.

“The refinery is not something you start and stop. It has to be running unless you are stopping for routine maintenance.”

In a report on November 20, Bloomberg said the plant purchased about two million barrels of West Texas Intermediate (WTI) Midland crude from Chevron Corporation.

The shipment, according to Bloomberg, would be delivered to the refinery next month.

“Dangote is taking a growing role in US and European oil markets, after gradually raising purchases of crude from Nigeria and the US. The plant’s pull on those barrels increases the competition for the oil faced by traditional buyers in Europe,” Bloomberg said.

According to tanker fixtures seen by Bloomberg, Chevron booked the supertanker Azure Nova to transport crude from the US Gulf around December 5 to the Dangote refinery.

The refinery is also beginning to shake up regional fuel markets, exporting petrol to West African countries.

Earlier this year, Dangote received shipments of US crude alongside domestic supplies.

But the imports dropped as the refinery switched to taking more local output, amid an agreement to take up to 400,000 barrels a day of Nigerian crude paid for in naira.