TotalEnergies, Dangote seal game-changing crude supply deal for new refinery

Africa’s richest man, Aliko Dangote, has struck a deal with the French oil giant TotalEnergies to supply his 650,000 barrels per day (bpd) refinery, built in Lagos, Nigeria’s commercial capital.

This was announced by Total Energies’ Chief Executive Patrick Pouyanne at the Africa CEO Forum in Kigali, Rwanda.

He explained that the two CEOs met with the head of trading and were convinced to make a deal.

Also speaking at the event, Aliko Dangote explained that the refinery has started producing jet fuel, diesel, and gasoline production will start next month.

He said the refinery has the capacity to supply West, Central, and Southern Africa, noting that the facility is too big for the Nigerian market alone.

Dangote has been working to secure adequate crude supplies for his 650,000 barrels per day (bpd) refinery, which would be the largest in Africa and Europe once it achieves full capacity.

Reuters news agency reported that the company, in May, issued a tender for two million barrels of US crude every month for a year beginning in July.

The oil refinery, which began operations in January, cost $20 billion to construct.

Nigeria is Africa’s largest oil producer and relies heavily on imported fuel to meet its domestic needs.

With the eventual completion of the private owned refinery, Dangote seeks to reduce Nigeria’s dependency on imported fuel and other refined products.

The next phase of the refinery will start early next year, Dangote said.