The Dangote Petroleum Refinery, constructed by Africa’s wealthiest individual, plans to buy 24 million barrels of US crude over the next year to boost its processing rates.
Specifically, the refinery is interested in purchasing 2 million barrels of West Texas Intermediate (WTI) Midland crude each month for a year, starting in July.
This tender, aimed at securing overseas oil, highlights the significant role the Dangote Refinery is poised to play in global crude and fuel trading, according to Bloomberg.
The tender, which closes at 3 p.m. on May 21, underscores the competition Nigerian crudes face against American supply, as noted by a trader of West African barrels.
Recently, the Dangote Refinery was ranked above Europe’s ten largest refining facilities. The $20.5 billion refinery boasts a processing capacity of 650,000 barrels per day, making it a formidable player in the industry.
The Dangote Group has stated that the new plant is designed to process both domestic feedstock and other African crudes, as well as supplies from regions further afield, including the US and Saudi Arabia.
Nigeria has long struggled with oil theft and pipeline vandalism, issues that have hindered its ability to meet the daily processing supply quota of the Dangote Refinery, its first private indigenous refinery.
Despite being one of Africa’s leading crude oil producers, Nigeria faces challenges in meeting its Organization of the Petroleum Exporting Countries (OPEC) quota and domestic supply demands. It is reported that Nigeria loses about 400,000 barrels per day to oil theft.
