Toba Owojaiye reporting
Abuja, Nigeria
The much-anticipated Dangote Refinery, a colossal $19 billion venture in Nigeria, is poised for fuel production with the arrival of its first crude shipment, marking a crucial milestone for the nation’s oil sector.
As reported by S&P Global, the OTIS tanker, laden with 950,000 barrels of Nigeria’s Agbami crude, embarked on its journey on December 6, en route to Lekki, Lagos State, the nearest land port to the offshore crude receiving terminal of Dangote’s massive refinery.
Truth Live News reports that the arrival of this initial crude shipment at the $19 billion Dangote Refinery is a noteworthy achievement for Nigeria’s oil industry, signifying progress for the facility.
According to S&P Global, the tanker is scheduled to reach its destination on December 7 around 8 p.m., marking the commencement of crude supplies for the refinery’s operations.
Quoting insights from a West African oil trader familiar with the matter, the Suezmax tanker, chartered by the state-owned Nigerian National Petroleum Company Limited (NNPCL), symbolizes the start of crude supply to Dangote’s state-of-the-art refinery as it gears up for fuel production.
Despite the refinery’s official completion in May, challenges arose due to the lack of domestic crude feedstock, hindering oil product manufacturing.
In response, the NNPC, holding a 20% stake in the refinery, recently entered an agreement to provide 6 million barrels of crude oil as feedstock in December. This strategic move aims to kickstart operations at the Dangote refinery.
Agbami, operated by Chevron, stands out as a significant deepwater development in Nigeria, boasting a daily output of approximately 100,000 barrels per day in the central Niger Delta. Recognized for its light sweet crude qualities, with a specific gravity of 47.9 API and sulphur content of 0.04%, Agbami yields substantial proportions of naphtha and kerosene.
The commencement of operations at the Dangote Refinery is a pivotal moment for Nigeria’s oil sector, promising economic and industrial advancement.