ABUJA, Nigeria (VOICE OF NAIJA) – The Dangote Petrochemical Refinery is set to import a minimum of five million barrels of crude oil in July, according to a report by Reuters, which confirmed the delivery will include U.S. West Texas Intermediate (WTI) crude.
The report, obtained on Saturday, revealed that tenders have been awarded for the purchase of approximately 161,000 barrels per day of U.S. crude to be delivered throughout the month.
However, the final volume could increase if the refinery secures additional cargoes.
This development follows earlier purchases for June estimated at around 300,000 barrels per day marking the refinery’s largest monthly booking of WTI crude to date.
“Nigeria’s Dangote oil refinery will import at least five million barrels of US WTI crude oil in July, three trading sources told Reuters, extending its buying spree after a potential record tally for June,” the Reuters report stated.
“The giant new 650,000 barrel per day capacity oil refinery is set to import around 161,000 bpd of WTI in July after awarding tenders in recent days, the sources said, off the back of a record 300,000 bpd booked in its June tenders.”
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Located in Lagos, the 650,000 bpd-capacity facility has increasingly turned to imported crude to support operations.
“We can take only what they are giving to us from Nigeria; this is a known fact. We have to import the rest,” said Edwin Devakumar, Head of the Dangote Oil Refinery, as quoted in the report.
Three trading sources also disclosed that Vitol is expected to supply two million barrels in July, with Azerbaijan’s state oil company, Socar, providing another two million, and Glencore delivering the remaining one million.
Though Nigerian crude remains the primary feedstock, the refinery has been importing WTI since March 2024 and has sourced spot cargoes from other countries, including Angola, Equatorial Guinea, Algeria, and Brazil.
According to data from shipping analytics firm Kpler, Dangote set a previous U.S. import record in April at 173,000 barrels per day.
This growing appetite for U.S. crude also reflects broader changes in the global oil market.
The Reuters report noted that traders observed weakening demand for U.S. barrels in Asia, as spot premiums for the UAE’s Murban crude hit a six-month low, prompting suppliers to shift their focus to African buyers such as Dangote.
Meanwhile, the refinery is expected to operate at reduced rates through October due to operational challenges experienced in recent months, according to industry monitor IIR.
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A spokesperson for the refinery told Reuters it is now ramping up to 85 per cent capacity (552,500 bpd), having maintained around 80 per cent throughput since mid-March.
Oil and gas companies operating in Nigeria increased their borrowing from deposit money banks by N3.25tn between December 2023 and December 2024, according to data from the Central Bank of Nigeria (CBN).
Figures from the CBN’s quarterly bulletin revealed that total credit to the sector rose from N8.36tn in December 2023 to N11.61tn in December 2024 reflecting a 38.8 per cent increase over the 12-month period.
This rise in borrowing coincides with the recent announcement that Nigeria secured over $8bn in investments for deepwater oil and gas projects within the year, signaling renewed momentum in the industry.
The development has been linked to reforms introduced under President Tinubu’s administration.
These investments followed Final Investment Decisions in major projects such as “Bonga North (Shell)” and “Ubeta (Total Energies),” among others.
Data showed that lending to the sector jumped sharply in January 2024 to N12.31tn from N8.36tn the previous month.
It peaked in February, with outstanding loans reaching N13.32tn.
A slight decline was recorded in March, as credit fell to N10.99tn, before rebounding to N11.83tn in April and climbing to N12.42tn in May.
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In June, lending slipped slightly to N11.97tn but rose again to N12.81tn in July.
The upward trend continued into August and September, with loans increasing to N12.85tn and N13tn respectively.
October saw a minor drop to N12.97tn, followed by a further decline to N12.74tn in November.
By December 2024, credit had dipped to N11.61tn still N3.25tn higher than the December 2023 level.
Further analysis also revealed that the Central Bank of Nigeria increased its foreign exchange allocations to the oil refining sector, rising from $82m in 2023 to $189.93m in 2024.
Disbursements were split across the quarters: “$40m, $47.25m, $47.25m, and $55.43m in Q1, Q2, Q3, and Q4, respectively.”