BY SPRINGNEWNG MEDIA LIMITED
MARCH 4, 2025

Lagos, Nigeria – Africa’s largest refinery, the 650,000 barrels per day (bpd) Dangote Refinery, has acquired its first cargo of Algeria’s light sweet Saharan Blend crude, marking another step in its bid to achieve full operational capacity.

Market sources quoted by Argus Media revealed that the refinery purchased 1 million barrels of the Saharan Blend from trading firm Glencore last week, with delivery expected between March 15 and 20. The deal’s financial terms remain undisclosed.

The refinery, built at an estimated cost of $20 billion, has been ramping up operations since January 2023, processing crude into diesel, naphtha, and jet fuel. By September, it had commenced petrol production. Dangote aims to rival European refiners but has faced challenges in securing sufficient local crude supply.

Data-Driven Expansion and Market Strategy

• The refinery has requested 550,000 bpd of crude for the first half of 2024, but Nigerian producers have struggled to meet demand.
• So far in 2024, approximately 420,000 bpd of crude has been delivered to Lekki for the refinery, with 82% being light sweet grades. Nigerian crude accounted for 87% of total arrivals, according to Vortexa data.
• Saharan Blend’s quality and competitive pricing make it a suitable alternative to Nigerian crude. The North African grade has seen a $1 per barrel price drop this month, trading at a 20¢/bl discount to the North Sea Dated benchmark.

Despite operating at 85% capacity in February, Dangote’s Head of Refinery, Devakumar Edwin, expressed confidence that full capacity could be reached within 30 days. The latest crude acquisition signals a diversification strategy as the refinery seeks to optimize its feedstock sources.

Oando Plc Selected as Preferred Bidder for Trinidad’s Guaracara Refinery

In a separate development, Nigerian oil giant Oando Plc has emerged as the preferred bidder for leasing the Guaracara refinery in Trinidad and Tobago.

Acting Prime Minister and Energy Minister Stuart Young cited Oando’s financial strength, including its $1.5 billion acquisition of ConocoPhillips’ Nigerian assets and its recent $700 million purchase of onshore oil fields from Italy’s Eni, as key factors in the selection.

The Trinidadian government emphasized that protecting Paria Fuel Trading Company’s assets and ensuring domestic fuel supply remain top priorities. Oando’s proposal aligned with government goals of reducing state financial burdens while ensuring the refinery’s restart.

Naija247news will continue to monitor developments in Nigeria’s refining sector and the strategic moves shaping the country’s energy landscape.