Shell International Trading and Shipping Co. (STASCO) delivered the inaugural 1 million-barrel crude oil shipment to Nigeria’s Dangote oil refinery, marking a significant step towards commencing operations after years of delays.
Upon reaching optimal functionality, the Aliko Dangote-funded refinery, with a capacity of 650,000 barrels per day, will pivot Nigeria from a major fuel importer to a net exporter. This achievement represents a pivotal moment for the OPEC member, realising a longstanding aspiration to reduce dependence on imports.
The Dangote Group confirmed that a shipment of 1 million barrels of crude from Agbami, Chevron’s deep-water field, represents the first of 6 million barrels crucial for the initial operation of the refinery.
That will kick-start the output of diesel, aviation fuel, and liquefied petroleum gas before the refinery later starts producing premium motor spirit.
A Dangote Group spokesperson said the STASCO cargo arrived on a chartered vessel and was discharged into the refinery’s crude oil tanks.
According to a statement from the Dangote Group, the Nigerian National Petroleum Corporation (NNPC) is set to provide the next four shipments within two to three weeks, and the ultimate cargo will be sourced from ExxonMobil (XOM.N).
Nigeria’s state oil firm, NNPC Ltd., signed an agreement in November to supply the Dangote refinery with up to six cargoes of crude starting this month. NNPC has a 20% stake in the refinery.
Despite being Africa’s biggest oil producer, Nigeria experiences repeated fuel shortages. It spent $23.3 billion last year on petroleum product imports and consumes around 33 million litres of gasoline a day.
“Our focus over the coming months is to ramp up the refinery to its full capacity,” Dangote was quoted as saying in the statement.
The refinery in Nigeria was inaugurated in May, experiencing significant delays in its completion. Representing a colossal investment of $19 billion, this petrochemical complex stands as one of Nigeria’s most substantial single investments.
