Libya, Angola in Dangote refinery’s sights as it seeks reliable oil supply sources
The management of Nigeria’s newly built Dangote refinery has commenced talks with Libya and Angola to purchase crude for the 650,000 barrels per day (bpd) plant.
This is part of the move to overcome domestic supplies challenges being faced by the company, according to a senior executive.
Aliko Dangote, Africa’s wealthiest man, constructed the $20 billion refinery on the outskirts of Lagos, creating the continent’s largest refinery, aimed at ending Nigeria’s reliance on imported fuels by addressing the country’s refining capacity shortfall.
Despite being Africa’s largest oil producer, Nigeria’s challenges with oil theft, pipeline vandalism, and inadequate investment have hindered Dangote Refinery’s ability to secure sufficient domestic crude supplies since its January startup.
As a result, the refinery has turned to importing crude oil from distant locations like Brazil and the United States to meet its needs.
Speaking with the Reuters news agency Dangote refinery senior executive Devakumar Edwin confirmed that the company has resorted to importing crude from as far as Brazil, the United States with Libya and Angola oils also anticipated.
“We are talking to Libya about importing crude,” Dangote refinery senior executive Devakumar Edwin told Reuters. “We will talk to Angola as well and some other countries in Africa.”
In another development, Nigeria’s regulator has alleged that Dangote Refinery’s gasoil exceeds sulphur limits (200ppm), but Dangote has refuted this, claiming levels have decreased from initial highs to 88ppm and will further drop to 10ppm by August as production increases.
