Dangote refinery to source crude from Brazil

Dangote refinery is gearing up to receive its first shipment of Brazilian crude oil as it continue to battle for full operational capacity.

The purchase of Brazilian crude is a first for Nigeria and the refinery which will receive a one-million-barrel cargo of Brazil’s Tupi crude for delivery in the second half of next month.

The cargo was sold by Petrobras, traders with knowledge of the transaction told Bloomberg.

“The refinery, billed as pivotal in ending Nigeria’s dependence on foreign fuel, has already snapped up millions of barrels of American crude,” the report by Bloomberg said.

Aliko Dangote, the chairman of Dangote Group said the refinery would continue to import crude oil as his refinery scales up production and seeks alternative supply contracts.

Indigenous crude oil refiners, including Dangote refinery and modular refineries, as well as local crude producers have repeatedly raised concerns about the low crude oil output from Nigeria.

Although the government, through the Nigerian Upstream Petroleum Regulatory Commission, has been making efforts to address this, oil production from Nigeria has remained low.

This has made it difficult for local refiners to get crude, as bulk of the oil produced in-country are exported due to earlier arranged contracts with International Oil Companies operating in Nigeria and the Nigerian National Petroleum Company Limited.

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