Shell International Trading and Shipping Company Limited (STASCO) has delivered an additional 1 million barrels of oil to Dangote Oil Refining Company as the company prepares to initiate the production of petroleum products.
This shipment arrives two weeks after the receipt of the initial cargo, which consisted of one million barrels from NNPCL. The latest cargo, which sailed to the facility’s Single-Point Mooring (SPM), has increased total deliveries to about two million barrels.
This oil batch constitutes a portion of the phases involved in the supply of 6 million barrels of crude oil to be supplied by a range of suppliers to the 650,000 b/d refinery.
Nigeria is Africa’s largest oil producer, but it imports refined petrol despite having four refineries that have become dysfunctional. Oil explorers in the country export crude to foreign refiners and import it back to the country for sale to downstream players, eroding its foreign exchange reserves.
The refinery’s operation is expected to turn Africa’s largest oil producer into a net exporter of fuels, a long-sought goal for the OPEC member that almost totally relies on imports.
Dangote earlier confirmed that the long-awaited refinery is starting with 350,000 barrels a day.
The Dangote refinery will start the production of automotive gas oil (diesel) and jet fuel (aviation fuel) in January 2024. However, the production of Premium Motor Spirit, popularly called petrol, is being delayed by the supply of crude oil in instalments.
A source told the Punch that for a 650,000-bpd capacity refinery, a minimum of six million barrels of oil are required to start production.
Dangote has said it expects more cargoes to be supplied by state oil firm NNPC Ltd. this month, as well as one from ExxonMobil. Last month, he declared his plans to list Dangote Petroleum Refinery on the Nigerian Exchange Limited.
