The Dangote Refinery has unveiled plans to end crude oil imports from the United States and other foreign suppliers, opting instead for 100 percent reliance on domestically produced crude by the end of 2025.
According to Bloomberg, the Vice President of Dangote Industries, Devakumar Edwin, disclosed the development in a recent interview. He revealed that the shift is already underway, with 53 percent of the refinery’s crude supply in June sourced from local producers, while the remaining 47 percent came from the US.
“We expect some of the long-term contracts will expire,” Edwin stated. “Personally, and as a company, we expect that before the end of the year, we can transition 100 percent to local crude.”
Edwin noted that the planned shift hinges on a significant ramp-up in local oil production in the coming months.
Since commencing operations in 2023, the $20 billion Lagos-based refinery has sourced crude oil from countries including the United States, Brazil, Angola, Ghana, and Equatorial Guinea.
To support the transition, Dangote Refinery is scheduled to receive five cargoes from the Nigerian National Petroleum Company (NNPC) in both July and August, according to a list of crude cargo allocations.
In a related development, the refinery on Tuesday announced a reduction in the ex-depot price of Premium Motor Spirit (PMS) to N820 per litre, a move expected to impact the downstream sector positively.
Comments