Nigeria's Billionare Dangote's Refinery Poised to Hit 550,000 BP OutPut this Year

Summary

• Nigeria's Dangote refinery is set to reach production levels of 550,000 barrels per day (bpd) this year, representing 85% of its capacity, despite having to increase crude imports due to limited domestic supplies.
• The refinery, with a capacity of 650,000 bpd and the largest in Africa, has received only five crude cargoes from the state oil firm NNPC instead of the expected 15.
• CEO Aliko Dangote mentioned that they have resorted to purchasing crude from Brazil and the U.S., with brokers charging a $4 mark-up per barrel.

Abuja, Nigeria- Nigeria's Dangote refinery is on track to produce 550,000 barrels per day (bpd) this year, achieving 85% of its capacity. However, the refinery has had to boost crude imports due to insufficient domestic supply, according to the plant's CEO.

Chief Executive Aliko Dangote revealed that the refinery, with a 650,000-bpd capacity and the largest in Africa, has received only five crude shipments from the state oil firm NNPC since it began operations earlier this year, far short of the anticipated 15 shipments.

To compensate, Dangote explained during a facility tour on the outskirts of Lagos that they have purchased crude from Brazil and the U.S. International oil companies (IOCs) have directed them to brokers, who charge a $4 premium per barrel.

Previously, NNPC had agreed to supply the refinery with 300,000 bpd but is now struggling with low production and has been trading some of its crude for gasoline imports.

The $20 billion Dangote refinery commenced production in January after experiencing several years of delays.