Nigeria’s major Dangote oil refinery is reportedly reselling cargoes of U.S. and Nigerian crude, according to four trade sources on Friday.
Three of these sources attributed the reoffer to technical problems at the refinery. When questioned about the offers and market rumours of operational issues affecting the crude distillation unit (CDU), a Dangote executive confirmed that the CDU is currently operational, Reuters reported.
The Dangote refinery, which began production in January, is set to become the largest in Africa and Europe once it reaches full capacity. This development could disrupt the $17 billion annual Europe-to-Africa fuel trade, and transform Nigeria into a fuel exporter.
Sources have reported that cargoes of Nigerian Escravos and Forcados crude, as well as U.S. WTI Midland crude, are among the grades being offered.
The plant has been importing several crude cargoes a month, traders said, adding that such resale by refineries is rare but not unknown.
Dangote Group responds:
In a statement addressing the claim, Anthony Chiejina, chief branding and communication officer, of Dangote Group, said the report was incorrect.
“Our attention has been drawn to a misleading report on our crude distillation unit and also that we are offering crude for re-sale,” Chiejina said.
“This is outright falsehood as we are not authorised to sell any crude we buy from Nigeria! Also, our CDU is working and in perfect condition,”
“We advise that you ignore these false narratives being peddled by those bent on the importation of dirty fuels into the country.”
The recent development comes amid a dispute between Aliko Dangote, chairman of Dangote Industries Limited, and officials from the Nigerian National Petroleum Company (NNPC) Limited.
The $20 billion 650,000 barrel-per-day Dangote refinery, built by Africa’s richest man Aliko Dangote, aims to reverse Nigeria’s reliance on fuel imports. This dependence persists despite Nigeria being Africa’s biggest oil producer.
