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Dangote Refinery Targets 100% Nigerian Crude Supply by End of 2025 — Bloomberg

Fola Badmus2 months ago2 months ago23 mins

Africa’s largest oil refinery, the 650,000-barrel-per-day Dangote Refinery, is poised to fully transition to sourcing its crude oil exclusively from Nigerian producers by the end of 2025, according to a report by Bloomberg. The refinery, which is already processing 550,000 barrels daily, received 53% of its crude from local sources in June, while the remaining 47% came from international suppliers including the U.S., Brazil, Angola, Ghana, and Equatorial Guinea. Devakumar Edwin, Vice President of Dangote Industries Ltd., told Bloomberg that the transition to 100% local sourcing is underway as several long-term foreign contracts are set to expire. “Personally, and as a company, we expect that before the end of the year we can transition 100% to local crude,” Edwin said during a recent interview at the Lagos-based facility. The $19 billion refinery, inaugurated in May 2023, is seen as a strategic solution to Nigeria’s long-standing reliance on fuel imports. Although Africa’s largest oil producer, Nigeria has historically exported crude for refining abroad and re-imported the finished products—a costly and corruption-prone cycle that the Dangote refinery aims to break. In July and August, Dangote is scheduled to receive five crude oil cargoes each month from the Nigerian National Petroleum Company (NNPC), with each shipment containing nearly one million barrels. Challenges and Outlook The road to full local sourcing has not been without obstacles. Nigeria’s oil sector has been hampered by crude theft, pipeline vandalism in the Niger Delta, and a shift in ownership of oil assets from international oil companies to under-resourced local firms. Despite these challenges, Edwin expressed confidence that improved cooperation between Dangote, local oil traders, and the Nigerian government will stabilize domestic supply chains. A Regional Beacon of Hope During a recent visit to the refinery, ECOWAS Commission President, Dr. Omar Alieu Touray, hailed the project as a “beacon of hope” for Africa, underscoring its significance in driving regional industrialisation and economic independence. The Dangote Refinery, when fully operational, is expected to drastically reduce Nigeria’s import bill, generate jobs, and cement Nigeria’s status as a net exporter of refined petroleum products.

Nigeria Introduces Real-Time Oil Export Monitoring to Curb Theft and Boost Revenue

Fola Badmus3 months ago3 months ago02 mins

Nigeria’s oil regulator has announced new export regulations requiring producers to obtain an export permit, vessel clearance, and a unique identification number to enable real-time tracking of crude oil cargoes, according to documents seen by Reuters. The move is part of a broader government strategy to curb oil theft, under-declaration, and revenue leakage at export terminals, which have long plagued Africa’s largest oil producer. “The new guidelines represent a significant step toward a more transparent, accountable, and efficient oil export regime in Nigeria,” said a spokesperson for the regulator. Previously, oil producers were only required to notify customs to receive an export permit, a system experts say was vulnerable to manipulation. Under the new Nigerian Upstream Petroleum Advance Cargo Declaration Regulation, exporters must now file advance cargo details including consignee, port of destination, tonnage, and estimated time of arrival. Energy lawyer Ayodele Oni noted the changes were necessary to address systemic issues of “under-reporting, theft, revenue loss, and data mismatches” in the oil sector. The regulator warned that non-compliance could attract penalties of up to $20,000, underscoring the administration’s drive to tighten oversight and improve fiscal accountability in the petroleum industry.

NNPCL set to supply Dangote Refinery 17.8m barrels of crude oil

Fola Badmus1 year ago1 year ago02 mins

Vice President, Downstream, NNPCL Adedapo Segun has revealed that the Dangote Refinery will receive additional 17.8million barrels of crude oil as part of the Federal Government push to drive local production of petroleum products. Adedapo stated this on AriseNews Morning Show on Thursday. It was gathered that the state owned oil company has supplied 30 million barrels of crude to the refinery to start its operation. Dangote Refinery announced early in the week, at a press briefing addressed by its Group Chief Executive, Aliko Dangote, that it is now ready to release its PMS to the market. According to Adedapo, 6.8million barrels in 7 cargoes of crude oil will be delivered to Dangote Refinery in September, while another 11 million barrels will be delivered in November. The VP Downstream further revealed why NNPCL is the sole importer of PMS in the country, noting that market conditions have not made it possible for independent marketers to bring in products as a result of forex illiquidity and pump price that is far below landing cost. Contrary to media reports that Dangote Refinery will only sell products to NNPCL as sole off taker, Adedapo said that Dangote will sell products to other marketers once the market conditions are right for them to play, adding that NNPCL for now will act in public interest as provider of last resort as provided for in the Petroleum Industry Act.