In a significant development, the Dangote Petroleum Refinery has restarted purchasing crude oil from the United States, marking a shift in its refining strategy.
This move follows a three-month pause in foreign crude purchases, during which the refinery focused on domestic supply.
A Bloomberg report revealed that a cargo carrying two million barrels of WTI Midland crude from Chevron Corp is scheduled for delivery to the refinery next month. “Dangote refinery purchased its first shipment of US oil after a hiatus of three months as the site continues to ramp up production. The plant purchased about two million barrels of WTI Midland crude from Chevron Corp.”
Earlier this year, Dangote regularly received US crude shipments alongside domestic supplies. However, imports decreased in August following an agreement with the federal government for the Nigerian National Petroleum Company Limited (NNPCL) to supply crude oil in naira.
Dangote’s growing role in US and European oil markets increases competition for traditional buyers. The refinery’s resurgence in US imports may be attributed to lower shipping costs, making US oil more affordable in Europe.
Newsmen reported on Monday that the refinery seeks to raise billions of dollars to import crude oil and boost production. Chairman Aliko Dangote is in talks with lenders, development banks, and oil traders to secure funding.
Tuesday saw the refinery commence shipping refined petroleum products to West African countries, signaling potential disruption to regional fuel markets.
This strategic move by Dangote Petroleum Refinery underscores its commitment to enhancing refining capacity and expanding its footprint in global oil markets.
