The Dangote Petroleum Refinery has purchased two cargoes of crude oil from the United Arab Emirates, marking its first-ever procurement of Middle Eastern crude as the company broadens its feedstock sources amid ongoing domestic supply constraints.
The development represents a strategic shift for the 700,000 barrels-per-day refinery, which has traditionally relied on Nigerian, African and United States crude grades to support operations.
According to a report by S&P Global Commodity Insights, the latest cargoes are the first sourced by the refinery from any Middle Eastern supplier, reflecting the company’s evolving procurement strategy as production capacity expands.
The report stated that the purchases followed renewed stability in Middle Eastern oil exports after the United States and Iran reached an interim peace agreement that restored confidence in shipping activities through the Strait of Hormuz.
Crude sourcing strategy expands
The refinery, originally designed to process Nigeria’s light sweet crude, has continued diversifying its crude basket to sustain operations and reduce supply risks.
An existing arrangement between the refinery and the Nigerian National Petroleum Company was reported to guarantee between 13 and 15 cargoes of Nigerian crude monthly in naira, helping reduce foreign exchange exposure.
However, supply limitations and operational challenges at export terminals have reportedly affected implementation.
According to S&P Global, Dangote Refinery Chief Executive Officer, David Bird, had earlier explained that these limitations encouraged the company to seek alternative crude sources beyond Nigeria.
Expansion plans drive higher crude demand
The refinery’s long-term expansion plans are also expected to increase demand for crude supply.
Dangote plans to expand the refinery’s processing capacity to 1.4 million barrels per day by the end of 2028, a scale capable of processing approximately 80 per cent of Nigeria’s recent daily crude production.
Speaking earlier in the year, Mr Bird stated that the refinery intends to increase the proportion of heavier crude grades in its processing mix.
“We definitely want to heavy up the barrel,” he said.
He added, “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.”
Merchant refinery ambition
According to the report, the refinery has steadily expanded the range of crude grades processed as part of its ambition to operate as a fully merchant refinery.
Data cited by S&P Global showed that in 2025, approximately 70 per cent of the refinery’s crude imports originated from Nigeria, while 24 per cent came from the United States.
The latest procurement from the UAE signals another phase in the refinery’s drive to strengthen supply flexibility and support future production growth.
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