8 key talking points from a Media Chat with the Managing Director/CEO, Dangote Petroleum Refinery, David Bird
Dangote Refinery will continue to meet Nigeria’s fuel demand despite global supply disruptions and market volatility.
Domestic refining gives Nigeria supply security, ensuring the country avoids fuel shortages and queues even when global markets are disrupted.
Even under the crude-for-naira arrangement, Nigerian crude is purchased at international benchmark prices, meaning the refinery does not receive discounted crude.
Import dependent countries are worst hit as the global oil crisis escalate.
Global oil markets are experiencing extreme volatility, with crude prices rising from the mid-$60 range to nearly $120 per barrel within a week.
The refinery is fully exposed to international commodity markets, including crude oil prices, freight rates, insurance, and financing costs.
Freight costs have surged dramatically, with tanker costs rising from about $800,000 to roughly $3.5 million per shipment in the current market environment.
Dangote Refinery operates at its full nameplate capacity of about 650,000 barrels per day, with potential to increase production to around 700,000 barrels per day.
