The Dangote Petroleum Refinery is preparing to import a cargo of Brazilian crude oil, according to Bloomberg.
Nigeria’s crude oil sector has been facing challenges with low production levels, impacting local refiners like the Dangote Refinery and modular refineries. Despite efforts by the Nigerian Upstream Petroleum Regulatory Commission to improve production, output remains low. Most of the country’s oil is exported under existing contracts with International Oil Companies and the Nigerian National Petroleum Company Limited, making it difficult for local refiners to access enough crude.
Traders with knowledge of the situation revealed that the Dangote Refinery, which is still ramping up to full capacity, is set to receive a shipment of one million barrels of Tupi crude from Brazil in the latter half of next month. This step is seen as crucial for reducing Nigeria’s dependence on imported fuel.
The refinery has already secured millions of barrels of American crude oil. The selection of non-Nigerian crude is based on competitive pricing and suitability for the refinery’s needs. The Brazilian crude was sold by Petrobras, a state-owned Brazilian multinational corporation.
This import marks the first time Brazil has exported oil to Nigeria, according to data from Brazil’s commerce ministry. Additionally, the Dangote Refinery recently purchased five million barrels of US crude scheduled for delivery in August and September. Earlier this year, the refinery announced plans to buy 24 million barrels of US crude over a year.
Modular refiners have indicated that crude oil imports will continue until Nigeria can produce enough barrels to meet both domestic demand and export requirements.
