In a move that will significantly impact Nigeria’s energy landscape, Dangote Petroleum Refinery is set to import a cargo of Brazilian crude oil. According to Bloomberg, the refinery will receive a shipment of one million barrels of Tupi crude from Brazil, scheduled for delivery in the second half of next month.
This development comes as Nigeria continues to struggle with low crude oil production, which has made it challenging for local refiners to source crude oil domestically. Indigenous crude oil refiners, including Dangote refinery and modular refineries, have repeatedly expressed concerns about the low output from Nigeria’s oil fields.
To mitigate this issue, the Nigerian government has been working to increase oil production through various initiatives, including the Nigerian Upstream Petroleum Regulatory Commission. However, despite these efforts, oil production from Nigeria remains low, leading to a reliance on imports.
Dangote refinery, which is still ramping up to full capacity, has already purchased millions of barrels of American crude oil in recent times. The latest purchase of Brazilian crude is likely due to the competitive pricing and suitability of the cargo.
According to Bloomberg, this is the first time Brazil has exported oil to Nigeria. The cargo was sold by a Brazilian multinational corporation owned by the state, Petrobras.
Dangote refinery has also recently purchased five million barrels of US crude oil scheduled for delivery next month and in September. In May this year, it was reported that the refinery planned to buy 24 million barrels of crude from the US over a period of more than a year.
Modular refiners have also expressed their concerns about the likelihood of continued crude importation until Nigeria produces enough oil to meet both domestic demand and exports.
The development is seen as a significant step towards ending Nigeria’s dependence on foreign fuel and promoting energy self-sufficiency in the country.
Join our Channel...