Nigeria’s Dangote Refinery, Africa’s largest refinery with a capacity of 650,000 barrels per day (bpd), has purchased its first cargo of Algeria’s light sweet Saharan Blend crude. The 1 million barrels cargo, bought from trading firm Glencore, is expected to be delivered between March 15 and 20, 2025, according to sources cited by Argus Media.
While neither Dangote nor Glencore has directly confirmed the deal, market sources indicate that this is a significant move for the refinery, which has faced challenges securing enough crude oil locally. The price of the purchased cargo remains undisclosed.
The Dangote refinery, owned by Nigerian billionaire Aliko Dangote, has been operational since January 2024 and started processing various products, including diesel, naphtha, and jet fuel, with gasoline production beginning in September 2024. Despite its size and potential, the refinery has struggled to secure sufficient Nigerian crude, despite its request for 550,000 bpd of local crude from Nigerian producers for the first half of 2025. The refinery is currently operating at 85% capacity, with plans to reach 100% within 30 days.
The purchase of Saharan Blend crude is expected to help meet the refinery’s demand and reduce Nigeria’s dependence on imported fuel. The crude’s quality aligns with the refinery’s needs, and its price is considered competitive compared to Nigerian crude grades.
Saharan Blend prices have been declining, with a $1 per barrel drop observed in March, now standing at a 20¢ per barrel discount to the North Sea Dated benchmark. This price adjustment, coupled with sluggish European demand due to refinery maintenance, has prompted sellers to explore other markets, potentially benefitting Dangote’s refinery.
So far, 420,000 bpd of crude has been delivered to Dangote’s Lekki facility in 2025, with about 82% of that being light sweet crude grades, predominantly from Nigeria.
Oando Chosen for Guaracara Refinery Lease
In related news, Nigerian multinational Oando Plc has been selected as the preferred bidder for the lease of the Guaracara refinery in Trinidad and Tobago. Acting Prime Minister Stuart Young announced the decision, citing Oando’s strong financial track record, including its $1.5 billion acquisition of ConocoPhillips’ assets in Nigeria and its recent $700 million purchase of onshore oil assets from Italy’s Eni.
The evaluation committee highlighted Oando’s ability to secure significant financing for upstream oil projects, giving it an edge over other bidders. Oando’s proposal aligned with the Trinidadian government’s objectives to reduce the state’s burden while ensuring the refinery’s continued operation. Prime Minister Young emphasized that the key focus would be to ensure the refinery’s restart, prioritizing the continued supply of domestic fuel.
