The Dangote Refinery in Lagos is scheduled to receive a
shipment of Brazilian crude oil, contributing to the substantial volume of
international barrels being imported by Africa’s largest oil-producing nation.
As per individuals familiar with the situation, the
refinery, which is still in the process of reaching its maximum capacity, is
anticipated to receive a shipment of one million barrels of Tupi crude from
Brazil, scheduled for delivery during the latter half of the upcoming month.
The shipment was divested by Petrobras, the traders informed
Bloomberg.
Representatives from the company and Dangote were not
immediately available for comment.
Brazil has recently made its first-ever oil export to
Nigeria, as per official data from the Latin American nation’s Ministry of
Commerce.
The Chairman of Dangote Group, Aliko Dangote, announced that
the refinery will continue importing crude oil as it ramps up production and
explores alternative supply agreements.
Between February and May, the refinery received 11 shipments
of West Texas Intermediate (WTI) crude oil, totaling approximately 9 million
barrels. This contrasts with the roughly 18 million barrels of Nigerian crude
oil that were delivered during the same period.
The decision to establish a lengthier offtake agreement
demonstrates the refinery’s dedication to further diversifying its sources of
crude oil on a more permanent basis, especially during a time of significant
weakness in demand for Nigerian supply.
“It’s a little surprising that they are seeking term WTI at
this stage,” said one West African crude trader, noting demand weakness that
pushed Nigeria’s flagship Bonny Light crude to a discount to Dated Brent for
the first time since November on May 17.