The Dangote Petroleum Refinery has imported crude oil from the United Arab Emirates for the first time as the facility continues to diversify its sources of raw materials.
The refinery purchased two cargoes of UAE crude, according to a report by S&P Global Commodity Insights.
The move comes as the refinery looks to secure more reliable feedstock supplies amid challenges with local crude availability.
Refinery increases global crude sourcing
The $20 billion facility was originally designed to process Nigeria’s light sweet crude.
However, as production activities increase, the refinery has continued to explore different crude grades from international markets to support steady operations.
S&P Global reported that the refinery is expanding the variety of crude it processes as part of plans to operate as a fully merchant refinery.
Domestic supply challenges affect operations
Nigeria’s crude supply has remained a key issue for the refinery despite agreements aimed at ensuring consistent deliveries.
The Nigerian National Petroleum Company Limited, NNPCL, had previously committed to supplying between 13 and 15 cargoes of Nigerian crude monthly through the naira-for-crude arrangement.
The deal was introduced to reduce foreign exchange pressure on the refinery.
However, supply limitations have continued to affect the availability of locally sourced crude.
Dangote targets wider crude mix
The refinery has indicated plans to increase the use of heavier crude grades in its production mix.
The expansion of supply options is expected to give the facility more flexibility as it works toward achieving stable operations.