The Dangote Refinery and Petrochemical Complex is actively seeking to diversify its crude oil supply by exploring potential imports from Libya and Angola, two prominent African oil-producing nations. This move comes as the Lagos-based facility, which has already been importing crude from Brazil and the United States, aims to broaden its sources to ensure sustainable operations. The refinery, valued at $20 billion and capable of processing 650,000 barrels per day, began operations in January and has faced challenges in securing domestic crude supplies.
“We are engaging with Libya to discuss crude imports and will extend similar discussions to Angola and other African countries,” noted Devakumar Edwin, a senior executive at the Dangote Refinery, during a recent briefing.
Despite being Africa’s largest refinery and the world’s biggest single-train facility, the complex has encountered hurdles in accessing local crude. Aliko Dangote, President of the Dangote Group, has criticized international oil companies (IOCs) for allegedly inflating crude prices to undermine the refinery’s operations.
Libya, according to the OPEC Monthly Oil Market Report for July 2024, produced an average of 1.119 million barrels per day in the first quarter and 1.19 million barrels per day in the second quarter. Angola, with a current output of approximately 1.1 million barrels per day, maintains similar production levels to its pre-OPEC exit, prompted by disputes over quotas.
In addition to its diversification efforts, the refinery’s management has emphasized its preference for sourcing crude domestically, provided local supplies are accessible and competitively priced. “We recently procured crude from the U.S. and Brazil but are also exploring opportunities within Africa. If adequate supplies are available locally, we will prioritize Nigerian crude,” Dangote stated in response to media inquiries.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the country’s energy regulator, has accused Dangote of seeking to monopolize the industry—an allegation arising from his criticism of IOCs’ unwillingness to supply crude to his refinery. The regulator also questioned the quality of products from the refinery, although subsequent tests disproved claims of inferiority.
During a recent inspection by the House of Representatives Committee, Dangote presented comparative results that highlighted the refinery’s superior product standards. For instance, samples from other suppliers, such as Total Petrol Station and Matrix, were found to have higher sulfur content and lower flashpoints compared to Dangote’s products.
To enhance competitiveness, the refinery has prioritized negotiations with diverse suppliers and implemented measures to reduce sulfur content in its products. These steps reflect its dedication to addressing operational challenges and establishing a robust presence in both African and global markets.
