Dangote Refinery Re-selling Some Earlier Purchased U.S. Crude – Reports

Dangote Refinery is allegedly re-selling some United States crude it had purchased to feed its plant, a top official of the refinery said in an earlier report by Reuters last week.

The decision to sell supplies from the United States of America came despite an option for the refinery to procure more local barrels.

According to Bloomberg, “the company is selling U.S. supplies, though has the option to procure more local barrels should it need to, the official said, declining to be identified because the information isn’t public. The site’s sole crude unit is continuing to operate.”

The Dangote Refinery has been gradually ramping up throughput this year as it runs U.S. and Nigerian crude, adding to a total capacity of 650,000 barrels a day.

According to reports, the refinery has been actively searching for excess U.S. supplies since it issued tenders for delivery in September. Sources said these tenders have failed to result in an award twice.

This has previously left open questions over the procurement strategy of the refinery and the implication this has on the local crude market.

In the earlier report by Reuters, it was said that “A Dangote executive asked about the offers and talked in the market that the refinery is having operational issues affecting the crude distillation unit, said the CDU is in operation.”

Recall it was reported earlier that Dangote Group CEO Aliko Dangote offered to sell his multibillion-dollar oil refinery to the state-owned energy company, Nigerian National Petroleum Company (NNPC) Limited, accusing the government of sabotage. This came amid the loggerheads with regulatory authorities in Nigeria.

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