WATCH THE VIDEO HERE The Lagos-based mega Dangote refinery has resumed importing crude oil from the United States after a three-month pause, as the facility increases its production levels. The refinery purchased around two million barrels of WTI Midland crude from Chevron Corp., according to anonymous sources familiar with the deal. The shipment is expected to arrive at the 650,000 bdp petrochemical plant in Lagos next month. Earlier in the year, the refinery regularly imported one or two shipments of US crude each month in addition to using domestic supplies. However, these imports were reduced around August following an agreement with the federal government that the Nigerian National Petroleum Corporation (NNPC) Limited would supply crude oil to the refinery in naira rather than dollars. The deal is that Dangote will receive up to 400,000 barrels of local oil daily, paid for in Nigerian currency. However, the latest report shows that Chevron hired the supertanker Azure Nova to transport the crude from the US Gulf Coast to Dangote Refinery, with loading expected around December 5, according to shipping records. The reasons for the return to US imports remain unclear, though a report from Sparta Commodities earlier this week suggests lower shipping costs may have made US oil more affordable in Europe recently. The management of Dangote has consistently raised concerns about challenges in sourcing crude oil from Nigeria. The Dangote Refinery, the largest single-train refinery in Africa and Europe, is set to reduce Nigeria’s heavy reliance on imported fuel.
Dangote Refinery resumes importation of crude oil from US after three-month break
