Dangote Refinery Boosts Stock of Imported US Crude Oil, Second Shipment on Its Way
Read Time:2 Minute, 16 Second
Dangote Refinery Boosts Stock
In a significant development for Nigeria’s energy sector, Dangote Refinery has increased its stock of imported crude oil from the United States. A trader and ship tracking data have confirmed that a second cargo of US light sweet crude oil is en route to Nigeria for delivery to the refinery. The vessel named Otis, which loaded approximately 850,000 barrels of WTI Midland in Houston last week, is signaling Lekki in Nigeria as its destination, according to Kpler and LSEG ship tracking. The vessel, chartered by Vitol, is estimated to arrive in mid-March.
This follows the initial shipment of two million barrels of US crude on the very large crude carrier Gem No. 1, also chartered by Vitol, which is nearing Nigeria and expected to discharge next week. These moves mark the first time that Dangote Refinery has purchased non-Nigerian crude, signaling a diversification strategy for the continent’s largest refinery, built by Aliko Dangote, Africa’s richest man.
The refinery, with a capacity of 650,000 barrels per day, commenced crude oil purchases from the Nigerian National Petroleum Corporation Ltd (NNPCL) in December last year. Additionally, the refinery has issued tenders to sell two fuel cargoes for export, according to a tender document and trading sources. In January, Trafigura Group reportedly sold two million barrels of WTI Midland to Dangote Refinery for end-February delivery.
This development is expected to have positive implications for Nigeria’s oil production. Recent data indicates that Nigeria’s efforts to increase crude oil output have shown progress, with a rise of approximately 60,000 barrels per day in February. The increase can be attributed to the processing of crude in the new Dangote refinery and a boost in exports. These figures provide some relief for Nigeria, which has been grappling with a foreign exchange shortage crisis partly due to its inability to raise oil output, a significant source of its foreign exchange earnings.
With the addition of condensate, Nigeria’s oil production reached 1.64 million barrels per day in January 2024, up from 1.55 million barrels per day in December 2023. If the shipping data figure of 60,000 barrels per day is added to the January production figure, Nigeria could be just about 20,000 barrels per day away from meeting OPEC’s quota of 1.5 million barrels per day for 2024. However, it is still below Nigeria’s daily oil production benchmark of 1.78 million barrels, which includes condensate exempted from OPEC calculations.
This development comes as a ray of hope for Nigeria, providing an opportunity to address its foreign exchange challenges and inch closer to meeting its oil production targets.
#Dangote Refinery Boosts Stock, Dangote Refinery Boosts Stock, Dangote Refinery Boosts Stock
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0
wonderful put up, very informative. I wonder why the other specialists of this sector do not realize this. You must continue your writing. I’m sure, you’ve a huge readers’ base already!
Hi there, just became aware of your weblog via Google, and found that it is truly informative. I am gonna be careful for brussels. I抣l appreciate when you continue this in future. Lots of other folks will be benefited from your writing. Cheers!
I just couldn’t depart your website prior to suggesting that I really enjoyed the standard info a person provide for your visitors? Is going to be back often to check up on new posts
You can certainly see your expertise in the paintings you write. The arena hopes for even more passionate writers such as you who aren’t afraid to say how they believe. At all times go after your heart.
Heya just wanted to give you a quick heads up and let you know a few of the pictures aren’t loading properly. I’m not sure why but I think its a linking issue. I’ve tried it in two different browsers and both show the same results.
I’ve come across that now, more and more people will be attracted to cams and the subject of pictures. However, to be a photographer, you need to first spend so much of your time deciding the model of digicam to buy plus moving from store to store just so you could potentially buy the most affordable camera of the brand you have decided to pick out. But it would not end there. You also have to contemplate whether you can purchase a digital dslr camera extended warranty. Thanks alot : ) for the good ideas I gained from your blog.