Exciting news is coming out of Nigeria! The Dangote Refinery, the largest single-train petroleum refinery in the world, has just received its first shipment of crude oil. This landmark achievement for the Nigerian petroleum industry brings us one step closer to a more self-sufficient future. But what does it all mean, and why is it important? Let’s take a closer look.
Dangote Oil Refinery in Nigeria got its first shipment of 1 million barrels of crude oil from Shell International Trading and Shipping Co (STASCO) this past Friday. This is a significant milestone for the refinery as it brings the start of operations within sight after facing numerous delays.
Backed by Africa’s wealthiest entrepreneur, Aliko Dangote, the refinery has the capacity to process 650,000 barrels of oil per day once it’s operational. This means Nigeria, an OPEC member country heavily dependent on fuel imports, will become a net exporter of fuels. This achievement marks the fulfillment of a long-awaited goal for the nation.
On Friday, the Dangote Group announced that they received their first cargo from Agbami, a deep water field operated by Chevron (CVX.N). What’s got them excited? This cargo, packed with 1 million barrels of crude, is paving the way for their refinery to function. And that’s not all! There are another 5 million barrels on their way as we speak.
A Dangote Group spokesperson said the STASCO cargo arrived on a chartered vessel and was discharged into the refinery’s crude oil tanks.
The next four cargoes will be supplied by state oil firm NNPC in two to three weeks and a final cargo will come from ExxonMobil (XOM.N), Dangote Group’s statement said.
Nigeria’s state oil firm NNPC Ltd signed an agreement in November to supply the Dangote refinery with up to six cargoes of crude starting this month. NNPC has a 20% stake in the refinery.
Despite being Africa’s biggest oil producer, Nigeria experiences repeated fuel shortages. It spent $23.3 billion last year on petroleum product imports and consumes around 33 million litres of petrol a day.
“Our focus over the coming months is to ramp up the refinery to its full capacity,” Dangote was quoted as saying in the statement.
Nigeria’s major investment, the Dangote refinery, which was years overdue and cost $19 billion to commission, was finally commissioned in May.