Nigeria’s Dangote Refinery in Talks with Libya to Secure Crude Oil Supplies

SEATTLE (Oil Monster): The 650,000 barrels per day (bpd) Dangote Refinery in Nigeria is said to be in talks with Libya towards securing supply of crude oil. Also, it is reportedly seeking options to source oil from Angola as well.

The refinery has been facing challenges in securing domestic supplies and has been importing crude from countries such as the U.S. and Brazil. The country has been a victim of several issues including crude oil theft and pipeline vandalism, which in turn has badly impacted local supply.

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Commenting on the matter, Devakumar Edwin, senior executive at Dangote Refinery stated that it is in talks with Libya, Angola and some other countries in the African continent. However, he declined to furnish details about the talks.

The largest buyers of gasoil from the refinery includes leading international traders and oil companies such as Trafigura, Vitol and BP. Dangote has captured substantial share of West African market from European refiners, Edwin added.

Dangote’s oil trading arm has become operational. It has already deployed staff in London and Lagos to manage supplies and sale of products. Also the Dangote official refuted claims that the petroleum products from the refinery are substandard, referring to the recent allegations by Nigeria's Midstream and Downstream that the sulphur content in its gasoil exceeds the required limit.