Dangote Refinery has secured at least 16 million barrels of Nigerian crude for October, equivalent to about 520,000 barrels per day. The refinery secured the volumes three days before opening its public offering, through which it plans to raise about $1.55 billion.
Dangote’s October crude purchases remain in line with recent months and well above last year’s average. NNPC will provide monthly allocations, while Dangote will source additional volumes through tenders. The refinery could still increase its October purchases.
The refinery’s October crude supply covers about 520,000 barrels per day, compared with its processing capacity of 700,000 barrels per day. Dangote will use imported crude grades to cover the gap. The refinery will also open its IPO order book on Monday, offering 4.1 billion shares at N525 each to raise about N2.15 trillion. Dangote plans to use the funds to expand capacity to 1.4 million barrels per day.
The planned capacity expansion will significantly increase Dangote Refinery’s crude requirements as the global oil market faces tighter supply. NNPC will supply eight Nigerian crude cargoes in October and one cargo of US WTI Midland, matching its highest monthly supply level to the refinery. Dangote has also purchased another WTI Midland cargo through a spot tender, while additional Nigerian cargoes will make up the remaining supply.
Dangote Refinery has also purchased crude from Libya and Guyana and continues to source different crude grades from international markets to meet its processing requirements.
source: www.billionaires.africa
African Energy Council