Dangote refinery has secured its first cargo of Equatorial Guinea’s medium-sweet Ceiba crude.
The refinery purchased a cargo of 950,000 barrels, loading on April 12-13, from BP, according to sources cited by Argus. The price of this deal remains undisclosed.
Typically, Ceiba crude primarily goes to China. Last year, the exports reached approximately 18,000 barrels per day to China. In addition, three shipments headed to Spain and one shipment to the Netherlands, according to Vortexa data. This year, tracking data indicates two cargoes loaded in February and March are destined for Zhanjiang, China.
Traders report that acquiring a Ceiba cargo aligns with Dangote’s strategy to diversify its crude sources.
Last month, the refinery also secured its first cargo of Algeria’s light sweet Saharan Blend crude from Glencore, set for delivery between March 15 and 20.
Market sources indicate that Dangote successfully obtained competitively priced crude from Equatorial Guinea amid sluggish demand for domestic grades in Nigeria’s European market. This dip occurs due to an oversupply of cheaper light sour CPC Blend from Kazakhstan, US WTI, and Mediterranean sweet crudes.
Several European refineries will undergo maintenance in April, contributing to reduced demand.
The Nigerian National Petroleum Company Limited (NNPCL) is currently negotiating with Dangote to extend their local currency crude sales arrangement. This program allows for crude prices to be set in dollars, with Dangote paying the naira equivalent at a discounted exchange rate.
Changes to this arrangement could pressure Dangote to increase its foreign crude purchases.
In January, refinery sources informed Argus that Dangote plans to source at least 50% of its crude needs from the import market. The refinery is also constructing eight storage tanks to support this initiative.
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