The Dangote Petroleum Refinery has imported its first crude oil cargoes from the United Arab Emirates (UAE), marking a significant shift in its sourcing strategy as persistent domestic supply shortages push the company to expand its crude supply base.
According to a report by S&P Global Commodity Insights, the two cargoes are the first Middle Eastern crude shipments acquired by the 700,000-barrels-per-day refinery, which has largely relied on Nigerian, African and United States crude grades since operations began.
The report stated that the purchases followed the resumption of Middle East oil exports after an interim peace agreement between the United States and Iran restored confidence in shipping activities through the Strait of Hormuz.
Although the refinery was designed primarily to process Nigeria’s light sweet crude, it has continued diversifying its feedstock to support growing production. An agreement with the Nigerian National Petroleum Company (NNPC) provides between 13 and 15 cargoes of Nigerian crude monthly in naira, helping to reduce exposure to foreign exchange volatility.
However, limited domestic crude supply and operational challenges at export terminals have disrupted that arrangement. Dangote Refinery Chief Executive Officer, David Bird, had earlier disclosed that the refinery was forced to seek additional crude supplies from international markets.
The refinery’s expansion plans are also expected to increase its crude demand significantly. Dangote aims to raise processing capacity to 1.4 million barrels per day by the end of 2028, allowing the facility to process about 80 per cent of Nigeria’s recent daily crude production.
Speaking earlier this year, Bird said the refinery intends to increase the share of heavier crude grades in its feedstock mix.
“We definitely want to heavy up the barrel,” he said, adding, “We will be in the crude blending game. At 1.4 million barrels per day, we could process about 30 per cent Middle Eastern grades on each train.”
S&P Global added that the refinery is steadily expanding the range of crude grades it processes as it moves towards operating as a fully merchant refinery. According to the report, about 70 per cent of its crude imports in 2025 came from Nigeria, while 24 per cent were sourced from the United States.
