- Dangote Refinery bought Algeria’s Saharan Blend crude from Glencore as it pushes for full capacity but struggles to secure local supply.
- Oando Plc won the Guaracara refinery lease in Trinidad, with the government requiring a complete restart, not just asset acquisition.
Nigeria’s Dangote refinery has bought its first cargo of Algeria’s Saharan Blend crude, Argus Media reported. The 650,000 bpd refinery purchased the one-million-barrel cargo from Glencore last week. The refinery expects delivery between 15 and 20 March. Dangote and Glencore have not confirmed the deal or revealed the price.
Africa’s largest refinery plans to reach full capacity this month. Nigerian billionaire Aliko Dangote built the facility for about $20 billion. It started producing diesel, naphtha, and jet fuel in January last year and petrol in September. The refinery competes with European refiners but struggles to secure enough local crude.
Refinery head Devakumar Edwin said operations had reached 85 per cent capacity last month. He added that the refinery could reach full capacity in 30 days. The refinery requested 550,000 bpd of crude from Nigerian producers for January to June, but suppliers have struggled to meet this demand.
Argus reported that no tankers loading in Algeria in February listed Africa as their destination, suggesting the cargo will be loaded in March. A trader said Saharan Blend suits the refinery’s requirements and costs less than Nigerian crude.
Vortexa data showed that nearly 420,000 bpd of crude reached Lekki for Dangote this year. Light sweet grades comprised 82 per cent of the supply, and Nigerian crude accounted for 87 per cent of arrivals.
Saharan Blend’s March-loading trade cycle slowed due to weak European demand, seasonal refinery maintenance, and crude supply. European buyers delayed purchases, expecting lower prices. Sellers then looked for other markets. Saharan Blend prices fell by $1 per barrel this month and now trade at a 20¢/bl discount to the North Sea Dated benchmark on a fob Algeria basis.
Meanwhile, Nigerian oil company Oando Plc has secured the lease for the Guaracara refinery in Trinidad and Tobago. Acting Prime Minister Stuart Young, also Minister of Energy, said Oando’s strong financial record played a key role. Oando previously bought ConocoPhillips’ Nigerian assets for $1.5 billion. The company also paid over $700 million for Eni’s onshore oil assets.
The evaluation committee found both Oando and the CRO Consortium capable of operating refineries. However, Oando’s ability to secure financing gave it an advantage.
Young stressed the need to protect Paria Fuel Trading Company’s assets to ensure domestic fuel supply. He said any bidder must restart the refinery instead of using Paria’s assets for bunkering. He added that Oando’s proposal matches the government’s plan to reduce financial burdens and keep the refinery flexible for future operations.