Nigeria’s $20 billion Dangote Refinery has reportedly issued a term tender to buy two million barrels of US crude oil monthly.
This is according to a recent report by Bloomberg.
The 650,000-barrel refinery established by Africa’s richest man, Aliko Dangote, is exploring all routes to achieving 100 per cent production capacity.
According to the report, the tender closes at 3 p.m. on May 21. One trader of West African barrels said the tender shows how Nigerian crudes are struggling to compete against American supply.
The refinery, currently under construction in the Lekki Free Zone near Lagos, Nigeria, is poised to become Africa’s largest oil refinery and the world’s largest single-train facility.
The development comes despite the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) mandating all oil companies in Nigeria to prioritise supplying crude to domestic refineries facing difficulties in procuring it locally.
Only after fulfilling these domestic supply obligations are producers permitted to export crude.
Barely a month ago, the refinery commenced supplying aviation fuel and diesel to oil marketers in Nigeria.
Meanwhile, Standard and Poor’s Global Commodities, S & P, said the refinery will start supplying petrol in the fourth quarter of 2024. However, the company fixed an earlier date for the commencement of fuel production.
Nigeria’s Dangote Refinery returns to US for 24m barrels of crude
