Dangote Petroleum Refinery, developed by Africa’s wealthiest individual, plans to purchase 2 million barrels per month of West Texas Intermediate (WTI) Midland crude from the United States over a 12-month period starting in July.
This tender for international crude oil, originating from a refinery in Africa’s leading oil-producing nation, underscores the significant impact the plant is expected to have on global crude and fuel markets, according to Bloomberg.
The tender will close at 3 p.m. on May 21. A trader specializing in West African barrels noted that this move highlights the difficulties Nigerian crudes face in competing with American supplies.
Recently, the Dangote refinery was ranked higher than the ten largest refining facilities in Europe. The $20.5 billion refinery boasts a processing capacity of 650,000 barrels per day.
The Dangote Group has previously stated that in addition to processing domestic crude, the refinery is equipped to handle crude from other African nations as well as international sources, including the US and Saudi Arabia.
Nigeria has long struggled with oil theft and pipeline vandalism, issues that have hindered the country’s ability to consistently meet the Dangote Refinery’s daily processing requirements. Despite being a leading crude oil producer in Africa, Nigeria continues to face challenges in meeting its Organization of the Petroleum Exporting Countries (OPEC) production quotas and domestic supply needs, reportedly losing about 400,000 barrels per day to oil theft.
