Africa’s largest refinery, the Dangote facility in Nigeria, is actively seeking crude oil supplies from Libya and Angola. This move comes as the refinery faces difficulties obtaining adequate domestic crude due to theft, pipeline vandalism, and low investment in Nigeria’s oil sector.
The $20 billion refinery, which began operations in January, was designed to end Nigeria’s reliance on imported fuels. However, it has been forced to import crude from as far as Brazil and the United States to maintain operations. The refinery’s senior executive confirmed ongoing talks with Libya and plans to approach Angola and other African countries for crude supplies.
Major international traders and oil companies, including Trafigura, Vitol, BP, and TotalEnergies, are among the largest buyers of Dangote’s gasoil, much of which is being exported. The refinery has been increasing its gasoil exports to West Africa, competing with European refiners.
Dangote has established its own oil trading arm with staff in London and Lagos to manage supplies and product sales. However, the refinery has faced criticism from Nigeria’s upstream regulator regarding the sulphur content in its gasoil. Aliko Dangote, the refinery’s owner, has denied these allegations, stating that the sulphur levels have decreased significantly and will continue to improve as production increases.