Latest news with #DangotePetroleumRefinery
Business Insider
3 days ago
- Business
- Business Insider
Dangote refinery extends U.S. crude buying spree into July
Dangote oil refinery plans to import at least five million barrels of U.S. West Texas Intermediate (WTI) crude oil in July, according to three trading sources familiar with the matter. The Dangote Refinery plans to import 5 million barrels of U.S. WTI crude oil in July 2023. The refinery has secured its July deliveries through tenders awarded to Vitol, Socar, and Glencore. The refinery's challenges include securing sufficient local crude supplies, supplemented by international imports. Dangote oil refinery plans to import at least five million barrels of U.S. West Texas Intermediate (WTI) crude oil in July, according to three trading sources familiar with the matter. The massive refinery, with a capacity of 650,000 barrels per day, is set to import around 161,000 barrels per day (bpd) of WTI crude in July after awarding tenders in recent days, the sources said. This comes after a record 300,000 bpd was booked in its June tenders. Commodity trader Vitol secured two million barrels for July delivery in the latest Dangote tender, Azerbaijan's state-owned Socar provided another two million barrels, and miner and trader Glencore sold the remaining one million barrels, Reuters reported. The sellers of the nine million barrels Dangote planned to import for June, according to an earlier tender, were not confirmed, as tender details are not publicly disclosed. Africa's largest refinery, the $20 billion Dangote Petroleum Refinery, has been sourcing crude oil from international suppliers to supplement its domestic deliveries as it continues to scale up operations. Dangote's previous record for U.S. crude imports was 173,000 bpd in April, according to data from global shipping analytics firm Kpler. Despite its massive capacity, making it larger than Europe's ten biggest refineries, Dangote Refinery has struggled to secure adequate crude supplies locally. To address this, founder Aliko Dangote announced that the company would source crude from other African-producing nations to maintain production levels. Dangote Petroleum Refinery and the state-owned Nigerian National Petroleum Company Limited (NNPC) have had disagreements, particularly regarding the naira for crude deal. However, in March, NNPC confirmed ongoing negotiations for a new naira-for-crude deal with Dangote Petroleum Refinery.
Business Insider
21-05-2025
- Business
- Business Insider
Naira-for-crude deal helping Nigerians pay less for petrol
The Dangote Petroleum Refinery has announced that its naira-for-crude oil agreement with the Nigerian government has enabled it to lower petrol prices, ultimately reducing costs at fuel stations for Nigerian consumers. Dangote Petroleum Refinery implemented a naira-for-crude oil agreement to reduce petrol prices in Nigeria. The initiative supports price stability and contributes to national economic development. Collaboration with the Nigerian government aligns with the 'Nigeria First Policy' to prioritize local goods and services. The Dangote Petroleum Refinery has announced that its naira-for-crude oil agreement with the Nigerian government has enabled it to lower petrol prices, ultimately reducing costs at fuel stations for Nigerian consumers. In a statement, the company's Group Chief Branding and Communications Officer, Anthony Chiejina, said that even though global crude oil prices keep changing, Dangote has continued to reduce petrol prices and promised to keep them stable and affordable. The company reaffirmed that price stability is part of its broader mission to contribute positively to national economic development. The statement read: 'We are immensely grateful to President Bola Tinubu for making this possible through the commendable naira-for-crude initiative, which has enabled us to consistently reduce the price of petroleum products for the benefit of all Nigerians, ' the statement stated. 'Our approach aligns with the objectives of the Federal Government's 'Nigeria First Policy', which promotes the prioritisation of locally-produced goods and services. Naira to crude controversy In March, reports emerged that the Nigerian National Petroleum Company (NNPC) had halted its naira-for-oil program, which had allowed local refineries to buy crude oil using the Nigerian currency. The news sparked concerns that the move could lead to a rise in fuel prices and increased pressure on the foreign exchange market. However, NNPC clarified that the agreement was a six-month pilot deal, dependent on crude availability, and scheduled to expire at the end of March 2025. Since the start of operations in 2023, NNPC has supplied the Dangote Refinery with over 84 million barrels of crude oil. The state oil company also confirmed it has begun talks with Dangote Refinery to extend the naira-denominated crude oil supply contract, reinforcing ongoing collaboration to ensure energy stability. By refining oil within Nigeria at its large refinery, Dangote said it is helping the country save foreign exchange, improve energy security, and boost the economy, supporting President Tinubu's economic recovery plan.
