Refineries in India have started seeking crude oil supply from Nigeria due to a decrease in imports from Russia. Meanwhile, the Dangote Petroleum Refinery in Lagos has acquired its initial shipment of one million barrels of Algeria’s high-quality light sweet Saharan Blend crude. India’s crude oil imports from Russia dropped significantly in February, reaching the lowest point since January 2023. This decline is attributed to sanctions imposed by the US and the UK on Russian energy firms, impacting shipments to major buyers.
To make up for the shortfall, Indian refiners have turned to countries like Nigeria, Angola, Mexico, and others for crude supply. The drop in Russian imports was offset by increased purchases from Iraq and Saudi Arabia. Despite the sanctions, Russia has reiterated its commitment to supplying oil globally, including to India.
Nigeria, as Africa’s leading oil-producing nation, increased its crude production to 1.5 million barrels per day in January, meeting its OPEC quota for the first time in three years. However, local refineries in Nigeria still face challenges with crude shortages.
The Dangote Petroleum Refinery’s recent purchase of Algerian crude is a significant step towards diversifying its crude oil sources and reaching its full daily refining capacity. This shipment marks the refinery’s first time refining Algerian crude, known for its premium quality and refining yields.
The Saharan Blend crude purchased by the refinery is highly sought after for its quality characteristics and competitive pricing compared to Nigerian grades. The refinery’s exploration of long-term crude supply agreements from international markets underscores its commitment to sourcing crude efficiently.
Aliko Dangote, the refinery’s founder, highlighted the importance of looking beyond local suppliers to ensure a steady crude oil supply. The refinery, which began operations in January last year, has been producing various petroleum products to meet market demands.