Dangote Refinery Imports First UAE Crude Cargoes

The Dangote Petroleum Refinery has imported its first-ever crude oil cargoes from the United Arab Emirates, marking a significant milestone in its strategy to diversify crude supply sources amid persistent domestic supply challenges.

According to a report by S&P Global Commodity Insights, the 700,000-barrels-per-day refinery recently purchased two cargoes of UAE crude, becoming the first Middle Eastern supplier to provide feedstock to the refinery since it commenced operations.

The development represents a departure from the refinery’s traditional dependence on Nigerian, other African, and United States crude grades as it broadens its crude procurement strategy.

The report stated that the purchases were made after oil exports from the Middle East stabilised following an interim peace agreement between the United States and Iran, which eased concerns over shipping disruptions through the strategic Strait of Hormuz.

Although the refinery was originally designed to process Nigeria’s light sweet crude, operational realities have forced it to seek additional sources of supply.

Earlier this year, the refinery secured an agreement with the Nigerian National Petroleum Company Limited that guarantees between 13 and 15 cargoes of Nigerian crude every month, with payments made in naira to reduce foreign exchange exposure.

However, the arrangement has reportedly been affected by insufficient crude availability and operational challenges at export terminals, limiting the volume of domestic crude delivered to the refinery.

Dangote Refinery Chief Executive Officer, David Bird, had previously disclosed that the company was exploring alternative crude sources to sustain production and support future expansion.

The refinery also plans to increase its processing capacity significantly over the coming years.

According to S&P Global Commodity Insights, the company aims to double capacity from 700,000 barrels per day to 1.4 million barrels per day by the end of 2028.

At that level, the refinery would be capable of processing about 80 per cent of Nigeria’s current daily crude oil production, making it one of the largest refining facilities globally.

Bird earlier revealed that the refinery intends to increase the proportion of heavier crude grades in its processing mix.

“We definitely want to heavy up the barrel,” Bird said in April.

He added that the refinery intends to become active in crude blending, noting that at full expanded capacity, up to 30 per cent of crude processed on each production train could come from Middle Eastern suppliers.

The report further indicated that the refinery has steadily diversified its feedstock portfolio as it positions itself to operate as a fully merchant refinery serving both domestic and international markets.

Data cited by S&P Global showed that approximately 70 per cent of the refinery’s crude imports in 2025 originated from Nigeria, while about 24 per cent came from the United States, with the latest UAE cargoes further expanding its global supply network.