With its increasing output, the Dangote Refinery in Lagos is in talks with Libya to purchase crude oil for its 650,000 barrels per day facility.
This information was provided to Reuters on Sunday by Devakumar Edwin, the vice president of Dangote Industry Limited (DIL).
The Vice President also stated that because the Nigerian National Petroleum Corporation (NNPC) Limited is unable to supply the refinery’s 650,000 barrels per day, the refinery would be looking to purchase oil from Angola.
Since starting business in January, Dangote has had trouble obtaining sufficient supply of crude oil in Nigeria.
Despite being Africa’s largest oil producer, the country struggles with theft, pipeline vandalism, and low investment.
As a result, Dangote has resorted to importing crude from as far as Brazil and the United States.
READ ALSO: Why We Sold Flour Mill in Nigeria – Dangote
“We are talking to Libya about importing crude.
“We will talk to Angola as well and some other countries in Africa,” Edwin said in a statement.
He mentioned that international traders and oil companies were among the largest buyers of Dangote’s gasoil, much of which was being exported.
Edwin noted that Dangote’s oil trading arm was operational, with staff in London and Lagos, to manage supplies and sell products.
“The biggest off-takers are the two big traders Trafigura and Vitol and BP and, to some extent, even TotalEnergies. But all of them are saying they are taking it to offshore,” Edwin said.
In recent days, the refinery has been enmeshed in dispute with the oil regulatory bodies in Nigeria, particularly the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The head of NMDPRA, Farouk Ahmed, accused the refinery, alongside other local refineries of having high sulfur contents, as high as 650 parts per million (ppm).
Ahmed also claimed that the CEO of the refinery, Aliko Dangote, might be attempting to monopolize the industry, a move he believed was not safe for the energy security of the country.
In response, Dangote challenged the regulatory authorities to visit his plant in Lagos and examine the content of their products, adding that they have the best quality products in Nigeria.
READ ALSO: Dangote Refinery Rejects Claims Of Substandard Products As Reps Leaders Visit
Accordingly, the businessman also halted his plans to invest in Nigeria’s steel industry to avoid accusations of being a monopoly.
It’s important to note that the steel industry, which has been moribund for decades, remains underdeveloped and underinvestment.
Dangote said other wealthy Nigerians can venture into the steel business, emphasizing that the board of his multi-sectorial firm has advised him to stay off the industry.
