Dangote Petroleum Refinery is set to bring in a shipment of Brazilian crude, according to Bloomberg’s report on Friday.
This import will add to the already substantial number of overseas crude barrels that the Nigerian firm has been bringing in.
Local crude oil refiners, including Dangote refinery, modular refineries, and domestic crude producers, have frequently voiced concerns over Nigeria’s low crude oil production.
Despite the Nigerian Upstream Petroleum Regulatory Commission’s efforts to address this, the country’s oil output has remained insufficient.
This production shortfall has made it challenging for local refiners to secure crude, as the majority of domestically produced oil is exported due to pre-existing contracts with International Oil Companies operating in Nigeria and the Nigerian National Petroleum Company Limited.
Bloomberg reported that traders with insider knowledge indicated that the Dangote refinery, which is still increasing its capacity, is set to receive a shipment of one million barrels of Tupi crude from Brazil, expected in the latter half of next month.
“The refinery, billed as pivotal in ending Nigeria’s dependence on foreign fuel, has already snapped up millions of barrels of American crude,” the report stated.
The purchases of non-Nigerian crude are likely due to the competitive pricing and suitability of these cargoes. The traders noted that the cargo was sold by Petrobras, a state-owned Brazilian multinational corporation.
Bloomberg mentioned that officials from both companies did not immediately respond to requests for comment.
Citing data from Brazil’s commerce ministry, the publication noted that this marks the first time Brazil has exported oil to Nigeria.
Recently, Dangote refinery acquired five million barrels of US crude, set for delivery next month and in September.
In May, it was reported that the refinery planned to purchase 24 million barrels of US crude over the course of a year.
Modular refiners have also indicated that crude importation will continue until Nigeria’s production levels can meet both domestic needs and export demands.
