The Dangote Refinery, which began operations in January, has been struggling to secure adequate crude supplies in Nigeria.
Despite being Africa’s largest oil producer, Nigeria is facing challenges such as theft, pipeline vandalism, and low investment, which have hindered the refinery’s access to domestic crude.
As a result, Dangote has resorted to importing crude from countries such as Brazil and the United States.
In an effort to diversify its supply sources, the company is also exploring options with other African countries.
“We are in talks with Libya to import crude,” said Devakumar Edwin, a senior executive at Dangote Refinery, in an interview with Reuters on Saturday. “We will also engage with Angola and other African countries.”
While Edwin did not provide details about the talks, he revealed that international traders and oil companies are among the biggest buyers of Dangote’s gasoil, which is primarily being exported.
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“The largest buyers of our gasoil are Trafigura, Vitol, BP, and to some extent, TotalEnergies,” Edwin said. “However, they are all taking the product offshore.”
Traders and shipping data have shown that Dangote is increasing gasoil exports to West Africa, taking market share from European refiners.
Nigeria’s upstream regulator has clashed with Dangote, saying the sulphur content in its gasoil was above the required limits of 200 parts per million (ppm).
Aliko Dangote has denied that, saying the sulphur level was higher when production started, but had fallen to 88 ppm and would sink to 10 ppm in early August as output rises.
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