Dangote’s $20 Billion refinery is relying less on imported crude and getting more supplies locally according to a report released on Wednesday, August 21, 2024. According to the report, the refinery is now getting about 80% of its supply from local sources, an increase from the previous quarter.
The increase signals a significant step towards reducing Nigeria’s dependence on foreign oil and promoting local production. The supply is also expected to rise in October following a directive by the Nigerian government to start selling crude to the refinery in Naira. Dangote refinery is expected to receive up to 445,000 barrels per day significantly reducing the need for foreign oil imports.
Since December, the refinery has processed over 56 million barrels of crude, with 78% sourced locally, following successful test runs and gradual ramp-up of operations.
This trend is likely to continue, with the potential for Dangote to become nearly self-sufficient in crude supply.
Reports emerged in July that the refinery was offering to sell various grades of crude it had acquired, including US West Texas Intermediate (WTI) Midland and Nigerian Escravos and Forcados crudes.
However, Dangote Petroleum Refinery denied these claims.
The report also suggested that such reselling practices, though rare, are not unprecedented.
In response, Chief Branding and Communication officer for Dangote Group, Anthony Chiejina, labelled the claims as false.
“Our attention has been drawn to a misleading report on our crude distillation unit and the allegation that we are offering crude for resale,” Chiejina stated.
He also emphasized that the refinery was not authorized to sell any of the crude it acquired from Nigeria and affirmed that the Crude Distillation Unit (CDU) is operating efficiently.
Chiejina also urged the public to disregard what he termed as false narratives intended to discredit the refinery.
Recall the refinery has been shrouded in several controversies especially revolving around access to crude and alleged sabotage by International Oil Companies (IOCs).
