HomeBUSINESSDangote Oil Refinery Seeks to Purchase Millions of Barrels of US Crude

Dangote Oil Refinery Seeks to Purchase Millions of Barrels of US Crude

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By Fasuyi Tolulope

The Dangote Oil Refinery in Lagos is seeking to purchase millions of barrels of US crude over the next year as it ramps up its processing rates. According to a document seen by Bloomberg, the refinery, built by Africa’s richest man, Aliko Dangote, has issued a term tender for the purchase of 2 million barrels per month of West Texas Intermediate (WTI) Midland crude for a 12-month period starting in July.
This tender underscores the significant role the Dangote refinery will play in global crude and fuel trading. Once fully operational, it will be the largest fuel-making facility in Africa, situated in Africa’s largest oil-producing nation.
The tender, which closes at 3 p.m. on May 21, highlights the competitive challenges faced by Nigerian crudes against American supply. One trader of West African barrels noted the difficulty Nigerian crude faces in competing with US offerings.
An official at Dangote did not immediately respond to requests for comment on the tender.
The Dangote refinery is a 650,000 barrels per day (BPD) integrated project located in the Lekki Free Zone near Lagos, Nigeria. It is set to become Africa’s largest oil refinery and the world’s largest single-train facility once completed.
In March, the Nigerian government expressed concerns over the supply of crude oil to domestic refineries, including Port Harcourt, Kaduna, Warri, Dangote, and BUA refineries.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, warned that without an increase in local crude oil production, these refineries might struggle to secure enough crude for processing petroleum products.

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