Lagos, Nigeria – Africa’s largest oil refinery, the $20 billion Dangote refinery located near Lagos, is in talks with Libya and Angola to secure crude oil supplies, according to a senior executive. This move comes as the refinery struggles to obtain sufficient domestic crude due to ongoing theft, pipeline vandalism, and low investment in Nigeria’s oil sector, despite the country being Africa’s biggest oil producer.
“We are talking to Libya about importing crude,” said Devakumar Edwin, a senior executive at the Dangote refinery, in a statement to Reuters. The refinery, designed to end Nigeria’s reliance on imported fuels, began operations in January 2024. However, a lack of readily available domestic crude has forced them to import from distant locations like Brazil and the United States.
Edwin declined to elaborate on the specifics of the talks with Libya and Angola, but he did reveal that major international oil companies and traders are among the biggest buyers of the refinery’s gasoil, a significant portion of which is being exported.
“The biggest offtakers are the two big traders Trafigura and Vitol, along with BP and to some extent, even TotalEnergies,” Edwin said. “However, they’re all indicating they’re taking it offshore.” Industry data suggests Dangote is indeed increasing gasoil exports to West Africa, potentially capturing market share from European refiners.
The Dangote refinery also has a recently established oil trading arm with offices in London and Lagos to manage supply chains and product sales, as reported by Reuters in March. This move suggests a long-term strategy to address potential crude supply challenges.
Meanwhile, a separate dispute regarding the sulfur content of Dangote’s gasoil persists between the company and Nigeria’s upstream oil regulator. The regulator claims the sulfur levels exceed the mandated limit of 200 parts per million (ppm). However, Aliko Dangote, owner of the refinery, maintains that the sulfur content, although initially higher, has already dropped to 88 ppm and is expected to reach 10 ppm by early August as production ramps up.
