Nigeria’s Dangote Refinery to Hit 550,000 bpd Production Amid Crude Supply Challenges
Bollywood Fever: Nigeria’s Dangote refinery is set to reach production levels of 550,000 barrels per day (bpd) this year, equating to 85% of its capacity, according to CEO Aliko Dangote. Despite this milestone, the refinery faces significant challenges due to insufficient domestic crude supplies, forcing an increase in crude imports.
The 650,000-bpd capacity refinery, the largest in Africa, has received only five crude cargoes from Nigeria’s state oil firm NNPC since commencing operations earlier this year, falling short of the expected 15 cargoes.
“That is why we went ahead and bought some Brazilian crude, we also got U.S. crude. Anytime we go to IOCs (international oil companies) they say go to brokers,” Dangote stated during a tour of the facility on the outskirts of Lagos, adding that brokers were charging a $4 mark-up per barrel of crude.
NNPC had previously agreed to supply the refinery with 300,000 bpd, but it is currently struggling with low production levels and allocating some of its crude for gasoline imports.
The Dangote refinery, constructed at a cost of $20 billion, commenced production in January after several years of delays.
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