The $19 billion Dangote Oil Refining Company is poised to commence petroleum product production with the delivery of two million barrels of crude oil. This development, marked by the recent receipt of an additional one million barrels of crude oil, comes two weeks after the initial delivery of one million barrels.
The refinery revealed that it procured the first one million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO), a major trading entity in Nigeria and globally, managing over 8 million barrels of crude oil daily. This represents the first phase of the planned 6 million barrels of crude oil supply from various suppliers.
The most recent cargo, unloaded into the refinery’s crude oil tanks at the Single-Point Mooring (SPM), has brought the total deliveries to approximately two million barrels.
Oil and gas experts view this substantial crude supply as a precursor to the Dangote Refinery initiating operations, deeming its imminent establishment as a significant milestone that could positively impact the economies of Nigeria and West Africa.
NJ Ayuk, the Executive Chairman of the African Energy Chamber, expressed excitement about the refinery securing its crude cargoes, emphasizing its importance for Nigeria and the West African region. With a daily production capacity of 350,000 barrels, the refinery is anticipated to contribute to Nigeria’s self-sufficiency in petroleum products, leading to exports to regional neighbors.
Ayuk stated, “This cargo will see diesel, aviation fuel, and Liquefied Petroleum Gas produced, followed shortly thereafter by the production of Premium Motor Spirit. These products will enable the country to become self-sufficient while exporting to regional neighbors.”
Dr. Diran Fawibe, the Chairman of International Energy Services, welcomed the development, emphasizing its potential to create additional job opportunities and contribute to the completeness of the industry. He noted that allocating a share of local production to refining is a desirable goal for any producing country, enhancing energy security and reducing dependence on product imports.