When Dangote Refinery Will Receive Another Crude Oil Shipment

When Dangote Refinery Will Receive Another Crude Oil Shipment

The Dangote Refinery has announced the receipt of its initial one million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO).

This development marks a significant stride in augmenting Nigeria’s local refining capacity.

In a statement released on Friday, the Dangote Refinery clarified that the cargo was transported to the facility’s Single-Point Mooring (SPM) and subsequently unloaded into the refinery’s crude oil tanks.

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“The STASCO cargo contained one million barrels from Agbami and sailed to Dangote Refinery’s Single Point Mooring (SPM) where it was discharged into the refinery’s crude oil tanks,” it said.

The company has outlined that the initial one million barrels of crude supply, constituting the first phase of the planned six million barrels to be delivered to its refinery by various suppliers, is intended to support the initial 350,000 barrels per day required for the initiation of crude production at its facility.

Furthermore, the company stated that the subsequent four cargoes, scheduled for delivery in two to three weeks, will be provided by the Nigerian National Petroleum Company Limited (NNPCL). The final six cargoes are slated to be supplied by ExxonMobil.

“This supply will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and LPG before subsequently progressing to the production of Premium Motor Spirit (PMS),” it said.

Commissioned in May by former President Muhammadu Buhari after years of delay, the facility located in the Lekki area of Lagos State is hailed as Africa’s largest oil refinery. Constructed by Africa’s wealthiest individual, Aliko Dangote, with the capacity to process 650,000 barrels per day at full operational capacity, the refinery, originally anticipated to commence operations in June, faced delays due to a lack of crude oil supply.

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The recent shipment received on Friday signifies a significant achievement in Nigeria’s energy sector. Despite being Africa’s most populous nation and one of the continent’s largest crude producers, Nigeria has relied on imports to meet local demand due to underperforming state-run refineries.

In the past, Nigeria exchanged crude valued at billions of dollars for gasoline it subsidized for its domestic market. However, the substantial drain on foreign exchange during a period of diminishing oil revenue compelled the government to eliminate the subsidy.

With the arrival of the recent oil shipment, the facility is now positioned to be a transformative force in the Nigerian energy landscape.

“Our focus over the coming months is to ramp up the refinery to its full capacity. I look forward to the next significant milestone when we deliver the first batch of products to the Nigerian market,” the President of Dangote Group Mr. Aliko Dangote said.

The new facility lies on 2,635 hectares (6,500 acres) of land at the Lekki Free Zone and costs an estimated $19bn.