According to a report by S&P Global Commodity Insights, the 700,000-barrels-per-day refinery has traditionally relied on crude from Nigeria, other African producers and the United States. The latest purchases mark its first crude imports from the Middle East, reflecting a significant shift in its sourcing strategy.
The report attributed the development to the resumption of oil exports from the Middle East following an interim peace agreement between the United States and Iran, which restored confidence in shipping activities through the Strait of Hormuz.
Although the refinery was built mainly to process Nigeria’s light sweet crude, it has increasingly diversified the grades of crude it processes as production activities continue to expand.
S&P Global noted that an agreement between the refinery and the Nigerian National Petroleum Company had secured the supply of between 13 and 15 cargoes of Nigerian crude every month in naira, a move aimed at reducing the refinery’s dependence on foreign exchange.
Despite the arrangement, the report said the refinery has continued to grapple with insufficient crude availability and operational disruptions at export terminals. These challenges, according to the report, had earlier prompted the refinery’s Chief Executive Officer, David Bird, to reveal that the company would source additional crude from outside Nigeria.
The report also stated that Dangote Refinery’s long-term expansion plans would significantly increase its demand for crude oil. The company intends to raise its processing capacity from 700,000 barrels per day to 1.4 million barrels per day by the end of 2028, enabling it to refine nearly 80 per cent of Nigeria’s recent daily crude oil production.
Speaking in April, Bird disclosed that the refinery planned to increase the proportion of heavier crude grades in its operations.
“We definitely want to heavy up the barrel,” Bird said.
He further explained, “We will be in the crude blending game. So you can easily imagine at 1.4 million b/d we could process 30 per cent Middle Eastern grades on each train.”
S&P Global added that the refinery has continued to widen the range of crude grades it processes as part of its strategy to operate as a fully merchant refinery. According to the report, about 70 per cent of the refinery’s crude imports in 2025 came from Nigeria, while 24 per cent originated from the United States.