The Dangote Petroleum Refinery has acquired two crude oil cargoes from the United Arab Emirates, representing its first purchase of Middle Eastern crude as it broadens its supply base in response to ongoing domestic supply shortages.
A report by S&P Global Commodity Insights stated that the two shipments are the first the 700,000-barrels-per-day refinery has sourced from the Middle East, indicating a move away from its usual dependence on Nigerian, African, and United States crude grades.
The report noted that the purchases came after oil exports from the Middle East resumed following an interim peace agreement between the United States and Iran, which boosted confidence in shipping activities through the Strait of Hormuz.
Although the refinery was built mainly to process Nigeria’s light sweet crude, it has continued to diversify its feedstock as production activities expand. S&P Global said an agreement with the Nigerian National Petroleum Company ensured the delivery of between 13 and 15 cargoes of Nigerian crude each month in naira, reducing the refinery’s exposure to foreign exchange fluctuations.
However, the arrangement has encountered difficulties due to limited crude supply and operational setbacks at export terminals. The report stated that Dangote Refinery Chief Executive Officer David Bird had earlier revealed that these issues forced the company to look beyond Nigeria for additional crude sources.
The report also indicated that the refinery’s growth plans would significantly raise its crude demand. Dangote aims to increase processing capacity to 1.4 million barrels per day by the end of 2028, enabling the facility to handle roughly 80 per cent of Nigeria’s recent daily crude output.
Speaking earlier this year, Bird said the refinery planned to raise the proportion of heavier crude grades in its feedstock mix. “We definitely want to heavy up the barrel,” Bird said in April.
He further stated, “We will be in the crude blending game. So you can easily imagine at 1.4 million b/d we could process 30 per cent Middle Eastern grades on each train.”
S&P Global added that the refinery has continued expanding the variety of crude grades it processes in line with its goal of operating as a fully merchant refinery. According to the report, around 70 per cent of its crude imports in 2025 came from Nigeria, while 24 per cent were sourced from the United States.
