By Ologeh Joseph Chibu
Dangote Petroleum Refinery is gearing up to receive a shipment of Brazilian crude, as recently reported by Bloomberg. This marks another addition to the refinery’s growing imports of foreign crude feedstock.
Concerns have been raised by indigenous crude oil refiners, including both Dangote Refinery and modular refineries, along with local producers, about Nigeria’s insufficient crude oil output. Despite efforts by the Nigerian Upstream Petroleum Regulatory Commission, domestic oil production remains constrained.
The majority of Nigeria’s oil output is exported due to existing contracts with International Oil Companies and the Nigerian National Petroleum Company Limited, making it challenging for local refiners to secure adequate crude supplies.
According to Bloomberg’s sources, Dangote Refinery, which is still in the process of ramping up to full capacity, is set to receive a shipment of one million barrels of Tupi crude from Brazil next month.
The refinery, positioned to reduce Nigeria’s dependence on imported fuel, has previously purchased substantial quantities of American crude. These purchases are likely driven by competitive pricing and suitability of the cargoes available in the market.
The Brazilian crude was reportedly sold by Petrobras, Brazil’s state-owned multinational corporation. Bloomberg noted that neither Petrobras nor Dangote immediately responded to requests for comment.
This transaction marks Brazil’s first oil export to Nigeria, as per data from Brazil’s commerce ministry. Dangote Refinery has also recently finalized purchases of five million barrels of US crude for delivery in the coming months, and had previously announced plans to acquire 24 million barrels of US crude over a year ago.
Modular refiners have indicated that reliance on crude imports will persist until Nigeria can enhance its production to meet both domestic and export demands.