Africa’s largest refinery, the 700,000 barrels-per-day Dangote Petroleum Refinery, has secured its first-ever crude oil cargoes from the United Arab Emirates, signalling a major shift in sourcing strategy as the company moves to reduce dependence on Nigerian supplies and expand its feedstock portfolio.
Industry reports indicate that the refinery has purchased two UAE crude cargoes, becoming the first Middle Eastern supply contracts secured by the Lagos-based facility since it commenced operations.
The move comes as the refinery grapples with persistent challenges in accessing adequate volumes of Nigerian crude despite an existing supply arrangement with the Nigerian National Petroleum Company Limited.
READ ALSO
The transactions followed the resumption of stable oil exports from the Middle East after the United States and Iran reached an interim understanding that eased concerns over shipping disruptions through the Strait of Hormuz.
The refinery, designed primarily to process Nigeria’s light sweet crude grades, has steadily widened its crude basket as production ramps up and operational requirements increase.
An agreement between Dangote Refinery and NNPCL guarantees between 13 and 15 cargoes of Nigerian crude monthly, with transactions denominated in naira to reduce foreign exchange pressures.
However, supply shortages and logistical challenges affecting export terminals have reportedly constrained deliveries, forcing the refinery to seek additional feedstock sources outside Nigeria.
Dangote Refinery Chief Executive Officer, David Bird, had earlier acknowledged the difficulties in securing sufficient domestic supplies and disclosed plans to diversify procurement strategies.
“We definitely want to heavy up the barrel,” Bird said earlier this year.
He added that the company was positioning itself to become a major participant in crude blending.
“We will be in the crude blending game. So you can easily imagine at 1.4 million barrels per day we could process 30 per cent Middle Eastern grades on each train.”
The refinery’s long-term expansion strategy targets an increase in processing capacity from 700,000 barrels per day to about 1.4 million barrels daily by the end of 2028.
At that level, the facility would be capable of refining almost 80 per cent of Nigeria’s recent crude production in a single day.
Available industry data show that about 70 per cent of crude imported by the refinery in 2025 originated from Nigeria, while approximately 24 per cent came from the United States.
The refinery has also sourced crude grades from several African producers and emerging suppliers in recent months, including Angola’s Cabinda and Saxi Batuque blends, Ghana’s Jubilee crude, as well as cargoes from Libya and Guyana.
Analysts believe the latest UAE purchases reflect Dangote Refinery’s ambition to evolve into a fully merchant refining operation capable of processing a significantly broader range of crude grades.
Bird, who joined the company in 2025 after leading operations at Oman’s Duqm refinery, has previously indicated plans to more than triple the number of crude varieties processed by Dangote from around 40 grades currently to well over 100 in the coming years.
The UAE’s principal export grades include Murban, Das Blend, Umm Lulu and Upper Zakum crude streams, many of which offer pricing advantages compared with some traditional light sweet crudes.
Market indicators show Murban crude trading around $66.40 per barrel in late June, reflecting softer prices following easing tensions in the Gulf.
Industry observers say the diversification drive could improve refinery flexibility, strengthen supply security and reinforce Dangote’s ambition of becoming a major refining hub for Africa and global markets.
Comments 1