Dangote Refinery to Import One Million Barrels of Brazilian Crude

The Dangote Refinery in Lagos to import a cargo of Brazilian crude, adding to the large number of overseas barrels that Africa’s biggest oil-producing nation is taking.

Traders with knowledge of the matter said the refinery, which is still ramping up to full capacity, would receive a one-million-barrel cargo of Brazil’s Tupi crude for delivery in the second half of next month.

The cargo was sold by Petrobras, the traders told Bloomberg.

Officials at the company, and one at Dangote, didn’t immediately respond to requests for comment.

It’s the first time that Brazil has exported oil to Nigeria, according to data from the Latin American country’s commerce ministry.

Aliko Dangote, the chairman of Dangote Group said the refinery would continue to import crude oil as his refinery scales up production and seeks alternative supply contracts.

The refinery took delivery of 11 WTI cargoes, or 9 million barrels, between February and May, contrasting with around 18 million barrels of Nigerian crude deliveries.

Now, the move to secure a longer-term offtake agreement signals a commitment by the refinery to more permanently diversify its crude sources, coinciding with a period of extreme demand weakness for Nigerian supply.

“It’s a little surprising that they are seeking term WTI at this stage,” said one West African crude trader, noting demand weakness that pushed Nigeria’s flagship Bonny Light crude to a discount to Dated Brent for the first time since November on May 17.

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