Dangote Refinery Runs to Libya, Angola to Source for Crude

By Iyojo Ameh

Dangote Refinery and Petrochemical Complex is currently looking for ways to source crude oil from Libya and Angola, two major crude oil producers in Africa. The $20 billion 650,000 barrels per day complex based in Lagos State is already importing crude from Brazil and the United States of America.

The latest moves are aimed at diversifying its crude oil sources in order to ensure sustainability.

“We are talking to Libya about importing crude. We will talk to Angola as well and some other countries in Africa,” Dangote refinery senior executive, said.

Since commencing production this January, the multibillion dollars refinery complex has had difficulty obtaining crude from local sources, a development that forced Africa’s richest man and President of Dangote Group, Aliko Dangote, to accuse the International Oil Companies (IOCs) of deliberating raising the prices of crude to frustrate the operations of his refinery complex.

Dangote Oil Refinery is a 650,000 barrels per day (BPD) integrated refinery project in the Lekki Free Zone near Lagos, Nigeria. It is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility.

According to the OPEC Monthly Oil Market Report July 2024, monthly crude oil production by Libya averaged 1.119 million barrels per day during the first quarter of 2024, and 1.19 million barrels per day during the second quarter of this year. On a monthly basis, Libya produced 1.194 million barrels per day in April 2024; 1.177 million barrels per day in May 2024, and 1.2 million barrels per day in June 2024.

Angola currently produces 1.1 million barrels per day worth of crude, according to Offshore Technology, which is about the same level of production before it exited the Organisation of Petroleum Exporting Countries (OPEC) due to disagreement on its quota.

“The biggest off-takers are the two big traders Trafigura and Vitol and BP and, to some extent, even TotalEnergies. But all of them are saying they are taking it offshore,” Edwin said.

“We just bought crude from the US and Brazil. And we will search other African countries for the same. If we can get from Nigeria, there is no need for us to search for crude in other producing countries,” Dangote said, while responding to enquiries from journalists in Lagos.

Recently, Farouk Ahmed, the chief executive officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigeria’s energy industry regulator, accused Aliko Dangote of aiming to be a monopoly in the nation’s energy industry following his protest against IOCs that refused to sell crude to his refinery.

NMDPRA not only accused Dangote of monopoly, he equally accused the refinery complex of producing inferior to those imported into the country, an assertion that was found to be false.

“When we were coming here, His Excellency, Speaker, said we should wet since we have media observers to pick up samples from two filling stations and when we get to our plant, they will pick up another sample to check. The result has actually come out and I’m going to share the same results with you,” Dangote said while taking the House of Representatives Committee on a tour of the refinery complex in Lagos.

“Total Petrol Station’s result showed 1800ppm, and Matrix’s result was 2653ppm. Flashpoint, Matrix was 61, which is below the minimum.

The minimum is 66. Total’s flashpoint was 26. Dangote’s flashpoint is 96,” Dangote added.

“Negotiations with Libya and other potential suppliers, as well as efforts to reduce sulfur content, illustrate the proactive measures taken by the Dangote refinery to ensure its viability and competitiveness.