NNPC To Deliver Six Million Barrels Of Crude Oil To Dangote Refinery June

The NNPC has allocated six cargoes of crude oil, amounting to approximately six million barrels, for delivery to the Dangote Petroleum Refinery in June 2025.

As the refinery gets ready to receive an unprecedented nine million barrels of U.S. crude, this new development underscores a crucial push to stabilize operations in the face of ongoing challenges with feedstock supply.

The recent shipments comprise one medium sweet grade, Escravos, along with four light sweet grades: Bonny Light, Brass River, Okwuibome, and Yoho. This adjustment addresses the shortages experienced over several months within a six-month supply agreement supported by the government, which permitted Dangote to make payments in naira.

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Simultaneously, Dangote is increasing its acquisition of U.S. West Texas Intermediate (WTI) crude. In June, the company plans to import nine million barrels, a significant rise from only a single shipment in May.

The deliveries will be handled by the traders Vitol and Petraco. Vitol is responsible for supplying three shipments, each carrying two million barrels. Petraco will supply a total of four million barrels, which includes one shipment via a Suezmax vessel.

In NNPC’s pricing for May, Escravos was priced at $1.63 more per barrel than Dated Brent, while Bonny Light had a premium of 48 cents. These prices are now closely comparable to WTI, even before factoring in freight costs.

Contrastingly, WTI was priced at a 90-cent premium compared to North Sea Dated when delivered to Europe. Dangote incurred comparable rates for its imports in June, though the exact final prices have not been revealed.

The global surplus of crude oil has posed additional difficulties for Nigerian producers. More affordable options, such as Kazakhstan’s CPC Blend, have offered a price advantage over Nigerian crude by approximately $3.20 per barrel in May. Despite its higher shipping expenses, CPC remains a more attractive option for several refiners.

European demand has decreased, causing some refineries to operate below capacity. Concurrently, Asian demand is also sluggish, resulting in an oversupply of light crude. It is anticipated that Europe’s intake of WTI will decline to 1.5 million barrels per day in June. As a result, Dangote has emerged as an important buyer for U.S. suppliers.