Dangote Refinery has successfully received its initial one million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO), marking a crucial advancement in enhancing Nigeria’s local refining capacity.
In a statement released on Friday, Dangote Refinery clarified that the cargo was delivered to the facility’s Single-Point Mooring (SPM) and subsequently discharged into the refinery’s crude oil tanks.
This first million-barrel crude supply, representing the initial phase of a six-million-barrel supply from various providers, is intended to support the initial requirement of 350,000 barrels per day to commence crude production at the refinery.
The Nigerian National Petroleum Company Limited (NNPCL) is scheduled to provide the next four cargoes within two to three weeks, while ExxonMobil will supply the final six cargoes.
Dangote Refinery, commissioned in May and located in the Lekki area of Lagos State, stands as Africa’s largest oil refinery. Built by Aliko Dangote, Africa’s wealthiest individual, the facility has the capacity to process 650,000 barrels per day when operating at full capacity.
Originally expected to commence operations in June, the facility faced delays due to a lack of crude oil supply. The recent shipment signifies a significant milestone for Nigeria, which, despite being a major crude producer, has relied on imports to meet local demand, primarily due to underperforming state-run refineries.
Nigeria previously exchanged its crude for gasoline, a practice costing billions of dollars, which strained foreign exchange reserves amid declining oil revenue. The removal of the subsidy became imperative to address this financial strain.
Dangote Group President, Aliko Dangote, expressed optimism about the refinery’s future, stating, “Our focus over the coming months is to ramp up the refinery to its full capacity. I look forward to the next significant milestone when we deliver the first batch of products to the Nigerian market.”
Situated on 2,635 hectares in the Lekki Free Zone, the refinery’s construction incurred an estimated cost of $19 billion.
Ada Peter
