Dangote Refinery anticipates ending crude imports to help local suppliers raise their stakes
By Jeph Ajobaju, Chief Copy Editor
Dangote Refinery plans to shelve crude imports from the United States and other countries and rely 100 per cent on local crude before the end of 2025, contingent upon domestic producers increasing their output.
Bloomberg reports Dangote Industries Vice President Devakumar Edwin as disclosing that the refinery received half of its crude in June from local producers who will be able to supply more to the facility as its foreign supply obligations end.
The refinery sourced 53 per cent of its crude from domestic producers in June and 47 per cent from the US, according to Bloomberg.
“We expect some of the long-term contracts will expire,” Edwin enthused.
“Personally, and as a company, we expect that before the end of the year we can transition 100 per cent to local crude.”
But he stressed that, to achieve the aim, there would have to be a significant increase in local oil production over the coming months.
Since Dangote Refinery opened in 2023, it has bought crude from the US, Brazil, Angola, Ghana, and Equatorial Guinea.
It is scheduled to get five cargoes from the Nigerian National Petroleum Company Limited (NNPC) in July, the same amount it expects in August, according to a list of cargo allocations of millions of barrels of crude.
The refinery on Tuesday announced a slash in its ex-depot price of fuel from N840 to N820 per litre that triggered price reductions by other marketers.
Read also:
Dangote Refinery cuts fuel price from N840 to N820 per litre, the second drop within 2 weeks
