Shell International Trading and Shipping Company Limited (STASCO) has delivered an additional 1 million barrels of crude oil to the Dangote Oil Refining Company in Nigeria. This follows a previous shipment of one million barrels from NNPCL just two weeks ago. The latest delivery, which reached the facility’s Single-Point Mooring (SPM), brings the total crude oil deliveries to approximately two million barrels.
This batch of oil is part of the phased supply of 6 million barrels of crude oil, involving multiple suppliers for the 650,000 barrels per day (b/d) refinery. Nigeria, being Africa’s largest oil producer, currently relies on importing refined petrol despite having four dysfunctional refineries. The country exports crude to foreign refiners and then re-imports the refined products, impacting its foreign exchange reserves.
The commencement of Dangote refinery‘s operations is anticipated to transform Nigeria from a net importer to a net exporter of fuels. The refinery, with an initial daily production capacity of 350,000 barrels, is set to produce Automotive Gas Oil (diesel) and JetA1 (aviation fuel) starting in January 2024. However, the production of Premium Motor Spirit (petrol) is experiencing delays due to the incremental supply of crude oil.
To initiate production for a refinery with a 650,000 bpd capacity, a minimum of six million barrels of oil is necessary, according to sources. Dangote expects additional cargoes to be supplied by the state oil firm NNPC Ltd later this month, along with one from ExxonMobil.