Dangote Refinery Buys First Ceiba Crude Cargo

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Dangote Petroleum Refinery has taken a significant step towards diversifying its crude sources by purchasing its first cargo of Equatorial Guinea’s medium sweet, Ceiba crude. The 950,000-barrel cargo, loading over April 12-13 from BP, marks a notable development in the refinery’s efforts to expand its feedstock options.

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According to sources familiar with the matter, as reported by Argus Media, the price levels of the deal were not disclosed. Notably, most Ceiba exports typically go to China, with around 18,000 barrels per day discharged there last year.

Industry experts suggest that buying a Ceiba cargo is part of Dangote’s strategy to diversify its crude sources. Last month, the refinery purchased its first cargo of Algeria’s light sweet Saharan Blend crude from trading firm Glencore, scheduled for delivery between March 15 and 20

Market sources revealed that Dangote secured competitively priced crude from Equatorial Guinea at a time when domestic grades face sluggish demand from Nigeria’s core European market. This is largely due to the ample supply of cheaper Kazakh-origin light sour CPC Blend, United States WTI, and Mediterranean sweet crudes.

The Nigerian National Petroleum Company Limited (NNPC) is currently in negotiations with the Dangote refinery regarding extending the naira-for-crude arrangement. “Any changes to the terms of the programme may pressure Dangote to increase the amount of foreign crude in its slate,” the report noted.

Aliko Dangote, founder of the refinery, stated last month that the facility aims to reach its full capacity in March. However, crude shortage remains a challenge, potentially hindering the refinery’s ramp-up plans.

NNPC spokesman Olufemi Soneye disclosed that 48 million barrels of crude oil have been made available to the Dangote refinery since October 2024, when the naira-for-crude deal started. He added that 84 million barrels had been made available since the refinery commenced operations in 2023.

“Under this arrangement, NNPC has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024. In aggregate, NNPC has made over 84 million barrels of crude oil available to the refinery since its commencement of operations in 2023,” Soneye noted.

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This indicates that the NNPC is supplying an average of 300,000 barrels of crude oil per day to the Dangote refinery. To hit its 650,000 target, experts suggest that the refinery must look elsewhere for feedstock

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