Dangote Oil Refinery has lined up imports of at least five million barrels of U.S. West Texas Intermediate (WTI) crude oil for delivery in July, building on what may become a record month of WTI intake in June.
According to a report published on the Reuters website on Friday, the refinery recently awarded tenders for the purchase of around 161,000 barrels per day (bpd) of U.S. crude to be delivered in July.
This follows earlier deals for June cargoes amounting to roughly 300,000 bpd — the largest volume of WTI ever booked by the refinery in a single month.
“Nigeria’s Dangote oil refinery will import at least five million barrels of U.S. WTI crude oil in July, three trading sources told Reuters, extending its buying spree after a potential record tally for June.
“The giant new 650,000 barrel per day capacity oil refinery is set to import around 161,000 bpd of WTI in July after awarding tenders in recent days, the sources said, off the back of a record 300,000 bpd booked in its June tenders,” the Reuters report read in part.
The 650,000 bpd-capacity plant, located in Lagos, is increasingly turning to foreign crude to meet its operational needs.
“We can take only what they are giving to us from Nigeria, this is a known fact. We have to import the rest,” the report quoted Edwin Devakumar, head of the Dangote Oil Refinery, as saying.
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Reuters, citing three trading sources, reported that Vitol will supply two million barrels for the July shipment, Socar (Azerbaijan’s state oil firm) another two million, and Glencore the remaining one million. Final volumes could change if the refinery makes further spot purchases.
Although the plant’s crude slate is primarily Nigerian, Dangote has been steadily importing WTI since March 2024, and has also bought spot cargoes from Angola, Equatorial Guinea, Algeria, and Brazil this year.
- Data from shipping analytics firm Kpler shows that in April, the refinery set its previous U.S. import record at 173,000 bpd.
- The increased procurement of U.S. crude also reflects shifting global market dynamics. The report highlighted that traders say U.S. barrels, particularly WTI, are facing stiff competition in Asia, where spot premiums for UAE’s Murban crude have hit a six-month low. As a result, suppliers are eyeing African buyers like Dangote as alternative export destinations.
- Meanwhile, industry monitor IIR stated that the refinery has been running at around 80% capacity since mid-March and is now ramping up toward 85% by October.
Although the sellers for the nine million barrels expected in June were not confirmed, Reuters noted that tender details are typically not made public.
