In line with a brand new report by Reuters, Dangote Petroleum Refinery retained 13 per cent of Nigeria’s crude oil exports as home provide in 2024.
It mentioned the event raised Nigeria’s home share of oil exports from from per cent in 2023 and barely lower the nation’s exports to Europe.
Nevertheless, regardless of being a serious web exporter of crude, Nigeria imported 47,000 barrels per day of US oil in 2024. Specialists say that is uncommon for crude oil exporting nations.
That is in opposition to the backdrop that the Nigerian Nationwide Petroleum Firm Restricted might proceed servicing its crude-for-loan obligations until 2029 because the demand for oil by home refineries will increase.
NNPCL’s debt burden arises from a number of crude-for-loan agreements which have tied volumes of the nation’s oil manufacturing to varied monetary commitments.
Persevering with, the report disclosed that the Dangote refinery, alongside different new refineries that sprung up within the international south, has reportedly altered the worldwide circulate of crude amidst sanctions on Russian oil Dangote Refinery imported US oil.
The 650,000bpd capability Dangote Petroleum refinery contributed to the elevated quantity of Nigeria’s crude imports from the USA.
Final yr, The PUNCH reported that the Dangote refinery acquired its first cargo of US WTI in November 2024.
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The a number of shipments acquired from the US by the Dangote refinery boosted Nigeria’s imports from the US in 2024 because the Nigerian Nationwide Petroleum Firm failed to provide.
The report additionally acknowledged that the amount of world crude export quantity in 2024 declined by two per cent, the primary dip for the reason that COVID-19 pandemic.
That is attributed to weak demand development and reshuffled commerce routes on account of conflicts, sanctions, and new pipelines and refineries.
The wars in Ukraine and the Center East induced a whole lot of rerouting of tanker shipments, whereas sanctions on Russia and Iran pressured importers in Europe and South America to hunt new suppliers.
Following the outbreak of Russia’s warfare with Ukraine, European refiners diminished their imports from Russia whereas boosting purchases of oil from the U.S. and the Center East.
Nevertheless, assaults on vessels within the Purple Sea on account of Israel’s warfare with Gaza led to increased delivery prices from the Center East, so refiners turned to the U.S. and Guyana.
Iraq’s exports dropped by 82,000bpd, whereas the United Arab Emirates noticed a lower of 35,000bpd. In the meantime, Europe elevated imports by 162,000bpd from Guyana and 60,000bpd from the US.
Whereas Europe and South America turned down Russia’s oil, India and China embraced it.
Different elements which have contributed to the reshuffling of oil commerce routes embrace the enlargement of Canada’s Trans Mountain pipeline to the nation’s west coast, falling oil output in Mexico, and a halt in Libyan oil exports.
SOURCE: The PUNCH