Hauwa Ali
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The Dangote Refinery has achieved a significant milestone as it awaits the arrival of its first crude oil shipment, marking the final stages of production.
Positioned to become the world’s largest single-train refinery, the project is poised to assist Nigeria in meeting its domestic fuel demands and transforming into a net exporter of refined products.
As of December 6, the Oil Tanker Intelligence Service (OTIS) reported that a Suezmax tanker, chartered by the Nigerian National Petroleum Company (NNPC), is en route to Lekki, the nearest land port to Dangote’s offshore crude receiving terminal, carrying a cargo of 950,000 barrels of Nigeria’s Agbami crude. This tanker signifies the commencement of Dangote’s initial crude supplies as the refinery prepares to initiate operations.
NNPC, holding a 20% stake in the refinery, has recently agreed to supply 6 million barrels of crude oil as feedstock in December, further solidifying the progress of the Dangote refinery. Chevron-operated Agbami, a significant deepwater development in Nigeria, is contributing to this supply, producing light, sweet crude known for its naphtha and kerosene yields.
Looking ahead, NNPC has chartered additional tankers to transport additional crude shipments from Nigerian offshore fields to the refinery later in the month. If all unfolds according to plan, Aliko Dangote, Nigeria’s foremost entrepreneur and the wealthiest individual in Africa, will usher in a new era with the $20 billion oil refinery located outside Lagos, potentially revolutionizing the continent’s largest economy.
For Dangote, the initiation of operations at this expansive facility represents the pinnacle of a remarkable career that spanned diverse industries such as salt, flour, sugar, and notably, cement. The refinery’s full capacity target of 650,000 barrels per day by the end of 2024 is Dangote’s aspiration, though the IMF expresses skepticism, projecting it to reach only a fraction of that by 2025.
The significance of the refinery lies in its potential to save Nigeria substantial foreign exchange expenditures on imported fuel once fully operational. Dangote emphasizes the importance of Nigeria, a major oil producer for over 50 years, refining its crude on a scale commensurate with its resources—a sentiment that underscores the transformative impact envisioned for the nation.
