“Dangote Refinery’s October Production Delay Due to Crude Oil Shortage”

By Milcah Tanimu

The Dangote Refinery’s failure to commence production in October was primarily attributed to a shortage in crude oil supply to the facility. The refinery, with an expected production capacity of up to 370,000 barrels per day of diesel and jet fuel, faced delays in achieving its production targets.

According to reports from ThePunch, the refinery did not receive the required volumes of crude oil needed to kickstart its production of refined petroleum products from the Nigerian National Petroleum Company (NNPC). This shortage in crude supply was not unique to the Dangote Refinery but also affected five other modular refineries in Nigeria, highlighting a broader issue in the industry.

Anonymous sources within the Nigerian Upstream Petroleum Regulatory Commission and the Federal Ministry of Petroleum Resources confirmed this situation. They revealed that officials from the Dangote Refinery had raised concerns about the lack of crude oil supply, and it was considered unusual for the company to be importing crude when Nigeria is a crude oil-producing nation.

This delay marked the second time in 2023 that the Dangote Refinery missed its production target. During the inauguration of the facility in May 2023, Aliko Dangote, the President of Dangote Group, had assured that the refinery would begin operations by the end of July. However, it failed to meet the July deadline. Subsequently, Devakumar Edwin, the Executive Director of the Dangote Group, had indicated in an interview with S&P Global Platts that the refinery would commence production with a capacity of 350,000–370,000 barrels per day of diesel and jet fuel by October, a target that was also not met due to the crude oil supply challenges.