The Dangote Refinery is said to have tempered with the federal government’s petrol supply strategy by initiating the sale of fuel in dollars to international markets, following the transportation of some products from the refinery to an offshore locations near Togo.
An investigation carried out by Bloomberg has disclosed that a contract has been entered between an international oil trader, Vitoil, and a business entity, for the lifting and delivery from the Dangote refinery of five cargoes, each comprising 38,000 metric tonnes. Among these cargoes is the CL Jane Austen, which has reportedly been tracked by Bloomberg.The crude oil utilized for producing the contracted product was purchased by the Dangote refinery, which is owned by Africa’s wealthiest individual,Aloko Dangote, in Naira, in line with a government framework that commenced in October.
According to a Bloomberg report, the private refinery has secured a contract with Vitoil for five cargoes, each containing 38,000 metric tonnes.Bloomberg’s investigation revealed that the tanker named The CL Jane Austen recently loaded over 300,000 barrels from Dangote.The vessel proceeded westward, as indicated by data from Vortexa, Kpler, Precise Intelligence, and ship-tracking information compiled by Bloomberg.The report noted, “It is currently anchored off the coast of Lome, a well-known location for ship-to-ship transfers.”
President Bola Ahmed Tinubu has mandated that crude oil be sold to the Dangote Refinery in Naira, a directive that has been confirmed as executed by the Nigerian National Petroleum Company Limited (NNPCL).In the meantime, the new fuel supply agreement between Dangote Refinery, which has benefited from crude oil sales in Naira, and Vitol is being conducted in dollars.
Although the shipment is relatively small in the context of the global gasoline market, it indicates an increase in Dangote’s production capacity and the possibility of exporting substantial quantities of gasoline beyond Nigeria, which could disrupt regional markets.Last month, the refinery dispatched its inaugural seaborne fuel cargo to the nearby commercial center of Lagos.
It remains uncertain whether significant volumes of Dangote’s fuel production will ultimately be exported.
A spokesperson for Dangote did not provide a response to a request for comment.
Last month, Nigeria ended the monopoly held by NNPC, its state-owned oil company, regarding the procurement of fuel from the plant for domestic consumption. Concurrently, the nation persists in importing fuel from Europe and the United States. The final destination of the cargo aboard the CL Jane Austen remains uncertain. While it is currently located off the coast of Togo, this region is frequently utilized for ship-to-ship transfers, indicating that the fuel may be redirected to another location.
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