Nigeria’s Dangote refinery is poised to receive its first shipment of Brazilian crude oil, marking a milestone as it progresses towards full operational capacity. This purchase represents Nigeria’s first import of Brazilian crude.
The refinery is set to receive a one-million-barrel cargo of Brazil’s Tupi crude, scheduled for delivery in the latter half of next month.
Despite being Africa’s largest oil producer, Nigeria has historically depended on foreign fuel imports to meet its domestic needs, as its refinery industry has been unable to keep up with demand.
By importing crude and refining it locally, Nigeria aims to enhance its energy security, reduce import dependency, and lower fuel prices for Nigerian consumers.
The ability of the Dangote refinery to source crude oil from diverse global suppliers is vital to its success and to Nigeria’s broader energy strategy, OilPrice.com suggests.
Brazilian crude, sold by Petrobras, is among the most cost-effective and suitable oil grades available on the global market.
Earlier this week, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reached an agreement with oil producers to supply crude oil to domestic refineries at market prices.
This agreement, finalized on Wednesday, ended a supply dispute that had strained relations with international oil companies. The NUPRC had criticized oil majors for hindering local crude oil purchases by demanding excessive premiums or claiming unavailability of crude.
This move is part of Nigeria’s broader efforts to secure a stable supply of crude for its refineries at market prices, ensuring the country’s energy infrastructure is resilient and capable of meeting its needs without over-relying on any single source.
