June 29 (THEWILL) — The Dangote Petroleum Refinery has imported its first-ever crude oil cargoes from the United Arab Emirates, marking a significant step in its strategy to diversify feedstock sources amid persistent constraints in domestic crude supply.
According to a report by S&P Global Commodity Insights, the 700,000-barrels-per-day refinery purchased two UAE crude cargoes, representing its first procurement from the Middle East. The move signals a shift from the refinery’s traditional dependence on Nigerian, other African, and United States crude grades as it seeks greater flexibility in sourcing feedstock.
The purchases came after oil exports from the Middle East resumed following an interim peace agreement between the United States and Iran, which restored confidence in shipping through the Strait of Hormuz, the report noted.
Although the refinery was designed to process Nigeria’s light sweet crude, it has increasingly broadened its crude slate as production ramps up. An existing agreement with the Nigerian National Petroleum Company guarantees the supply of between 13 and 15 cargoes of Nigerian crude monthly in naira, helping reduce the refinery’s foreign exchange exposure.
However, inadequate domestic crude availability and operational challenges at export terminals have disrupted supplies. Dangote Refinery Chief Executive Officer, David Bird, had earlier disclosed that these constraints necessitated sourcing additional crude from international markets.
The refinery’s crude demand is expected to rise further as Dangote plans to double its processing capacity to 1.4 million barrels per day by the end of 2028. At that level, the facility would be capable of processing about 80 percent of Nigeria’s current daily crude oil production.
Speaking in April, Bird said the refinery intends to increase the proportion of heavier crude grades in its feedstock mix. “We definitely want to heavy up the barrel,” he said, adding that the refinery would also engage in crude blending and could process as much as 30 percent Middle Eastern crude on each processing train.
S&P Global said about 70 percent of the refinery’s crude imports in 2025 originated from Nigeria, while 24 percent came from the United States.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
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