The Organisation of Petroleum Exporting Countries (OPEC) has predicted that Nigeriaâs Dangote Refinery will impact Europeâs oil industry, especially in the Northwest European gasoil market.
The 650,000 bpd-capacity refinery in Nigeria is expected to disrupt traditional diesel and jet suppliers, putting pressure on Europeâs refined petroleum product market.
In its June Oil Market Report, OPEC identified the Dangote Refinery as a crucial player among global suppliers. Potential production increases are expected to challenge Europeâs reliance on established sources.
The report said:
According to reports, the Dangote Refinery began operations in January 2024 and has already started to influence global oil flows.
Standard & Poor Global said the facilityâs total capacity could reshape the international crude oil market.
The oil and gas vice president at Dangote Industries Limited, Devakumar Edwin, confirmed the refineryâs first successful jet European export.
He said the facility has already exported about 3.5 billion litres, representing 90% of its production.
The refinery has faced challenges with the crude oil supply from Nigeria, Africaâs largest oil producer, leading to the import of the product from the US and Brazil.
The Chairman of the Dangote Group, Aliko Dangote, recently addressed concerns about the facility, reaffirming its primary focus on Nigerian crude.
According to reports, the refinery was built to use Nigerian crude and add value to it within Nigeria. Dangote said this while acknowledging that supply issues are being addressed.
He said the refinery remains open to sourcing crude from other regions, including Libya, Angola, and Brazil.
TimesNow.com.ng earlier reported that the Dangote Group is reportedly exploring the sale of a 12,5% stake in the newly commissioned refinery to meet its financial obligations.
The global rating agency, Fitch Ratings, disclosed this in its report on the refinery.
The Nigeria National Petroleum Company Limited (NNPC) acquired a 7.25% stake in the facility for $1 billion, with an option to purchase the remaining 12.75% stake by June 2025.
Source: TimesNow.com.ng
