Dangote Refinery Secures Permit to Process 300,000 Nigerian Crude Daily

The Dangote Refinery, led by Alhaji Aliko Dangote, has obtained a license to refine more than 300,000 barrels of crude daily. In an interview during the Saudi-Nigeria business roundtable in Riyadh on November 11, Dangote highlighted the imminent commencement of refinery operations.

Their primary focus initially lies on supplying petrol to Nigeria before expanding to other regions, prioritizing the use of Nigerian crude over foreign sources. Dangote revealed the expected production quantities of diesel, kerosene, and jet fuel while also confirming plans to source crude from various Nigerian producers and the Nigerian National Petroleum Company Limited (NNPCL). An arrangement with the NNPCL involves multiple crude oil shipments for testing purposes, beginning with a substantial 200,000 barrels per day in December, subject to potential adjustments in subsequent months. Devakumar Edwin, the Executive Director at the Dangote Group, previously anticipated the refinery’s diesel and jet fuel operations to commence by October 2023, followed by petrol refining in November 2023.

While the facility aimed to reach a maximum capacity of 650,000 barrels per day for petrol production by November 30, this timeline was not met.

A notable development in the industry involves the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) enforcing domestic crude oil supply obligations to local refineries as outlined in the Petroleum Industry Act (PIA) of 2021.

Engr. Gbenga Komolafe, the Chief Executive of the Commission, emphasized compliance with the Act during a meeting with crude suppliers in Abuja on November 1, underscoring the NUPRC’s authority to allocate domestic crude supply based on national demand. Komolafe urged consistent communication from crude oil producers regarding their committed and uncommitted barrels, stressing the importance of adhering to the PIA’s provisions.