ABUJA, Nigeria (VOICE OF NAIJA)-The Dangote Petroleum Refinery has acquired two cargoes of crude oil from the United Arab Emirates, marking the first time it has sourced crude from the Middle East as it seeks to diversify its feedstock amid ongoing domestic supply challenges.
According to a report by S&P Global Commodity Insights, the two cargoes represent the first crude supplies the 700,000-barrels-per-day refinery has secured from a Middle Eastern supplier, reflecting a shift from its traditional dependence on Nigerian, African and United States crude grades.
The report stated that the purchases followed the resumption of oil exports from the Middle East after the United States and Iran reached an interim peace agreement that restored confidence in shipping through the Strait of Hormuz.
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Built primarily to process Nigeria’s light sweet crude, the refinery has continued to broaden its crude sourcing as it ramps up operations. S&P Global reported that an agreement between the refinery and the Nigerian National Petroleum Company guarantees the supply of between 13 and 15 cargoes of Nigerian crude monthly in naira, reducing the refinery’s exposure to foreign exchange fluctuations.
However, the arrangement has encountered setbacks due to limited crude availability and operational difficulties at export terminals. The report noted that Dangote Refinery Chief Executive Officer, David Bird, had previously revealed that these challenges forced the company to seek additional crude supplies outside Nigeria.
According to the report, the refinery’s expansion plans are expected to increase its crude demand further. Dangote plans to raise the refinery’s processing capacity to 1.4 million barrels per day by the end of 2028, enabling it to refine about 80 per cent of Nigeria’s recent daily crude oil production.
Speaking earlier this year, Bird said the refinery planned to increase the proportion of heavier crude grades in its feedstock.
“We definitely want to heavy up the barrel,” Bird said in April.
He added, “We will be in the crude blending game. So you can easily imagine at 1.4 million b/d we could process 30 per cent Middle Eastern grades on each train.”
S&P Global also reported that the refinery has continued expanding the range of crude grades it processes as part of its strategy to operate as a fully merchant refinery.
According to the report, about 70 per cent of the refinery’s crude imports in 2025 came from Nigeria, while 24 per cent originated from the United States.