Published on 21/12/2023
Dangote Oil Refining Company Secured Additional 1 Million Barrels of Oil from Shell International Trading and Shipping Company Limited for Upcoming Petroleum Production.
- Dangote Oil Refining Company has received another 1 million barrels of oil from Shell.
- This shipment arrives two weeks after the receipt of the initial cargo, which consisted of one million barrels from NNPCL.
- The latest cargo, which sailed to the facility’s Single-Point Mooring (SPM) has increased total deliveries to about two million barrels.
This shipment arrives two weeks after the receipt of the initial cargo, which consisted of 1 million barrels from NNPCL. The latest cargo, which sailed to the facility’s Single-Point Mooring (SPM) has increased total deliveries to about two million barrels.
This oil batch constitutes a portion of the phases involved in the supply of 6 million barrels of crude oil to be supplied by a range of suppliers to the 650,000 b/d refinery.
Nigeria is Africa’s largest oil producer, but it imports refined petrol despite having four refineries that have become dysfunctional. Oil explorers in the country export crude to foreign refiners and import it back to the country for sale to downstream players, eroding its foreign exchange reserves.
The refinery’s operation is expected to turn Africa’s largest oil producer into a net exporter of fuels, a long-sought goal for the OPEC member that almost totally relies on imports.
Dangote earlier confirmed that the long-awaited refinery is starting with 350,000 barrels a day.
The Dangote refinery will start the production of Automotive Gas Oil (diesel) and JetA1 (aviation fuel) in January 2024. However, the production of Premium Motor Spirit popularly called petrol is being delayed by the supply of crude oil in instalments.
A source told the media that for a 650,000bpd capacity refinery, a minimum of six million barrels of oil is required to start production.
Dangote has said it expects more cargoes to be supplied by state oil firm NNPC Ltd this month as well as one from ExxonMobil.
Last month, he announced intentions to publicly list his Dangote Petroleum Refinery on the Nigerian Exchange Limited.
