The Dangote Petroleum Refinery has bought two shipments of crude oil from the United Arab Emirates, a move that signals further progress in expanding its supply base as it contends with ongoing domestic feedstock limitations. The latest UAE purchase is being viewed as a first-of-its-kind procurement of Middle Eastern crude for the refinery, which is designed mainly for Nigeria’s light sweet crude but has been adapting its sourcing mix as production scales.
Key takeaways
- Dangote Petroleum Refinery acquired two cargoes of crude from the United Arab Emirates.
- The UAE shipment is described as the refinery’s first procurement of Middle Eastern crude as it expands feedstock options.
- In 2025, roughly 70% of the refinery’s crude imports came from Nigeria, while about 24% were sourced from the United States.
- NNPCL had previously committed to deliver 13 to 15 cargoes of Nigerian crude per month under a naira-for-crude arrangement.
- Crude prices dipped below $70 per barrel last week, then moved higher on Monday after renewed US and Iran strikes tied to developments around a peace agreement.
UAE crude purchase highlights a shifting sourcing strategy
Industry analysis indicates that the refinery’s newest import from the UAE represents its first recorded purchase of Middle Eastern crude. The transaction comes as Dangote seeks to broaden the range of feedstock grades it processes while it scales up operations under conditions where local supplies have remained constrained.
Although the plant was built primarily to process Nigeria’s light sweet crude, it has been increasingly diversifying the crude it runs. The stated goal is to evolve into a fully merchant refinery—meaning it would be able to buy and process a wider set of crude grades rather than relying predominantly on one domestic stream.
That broader approach is reflected in the refinery’s import patterns. For 2025, about 70% of its crude arrivals were reportedly from Nigeria. The remaining portion included imports from the United States, which accounted for approximately 24% of the total.
Naira-for-crude deal, but supply constraints persist
Earlier, Nigerian National Petroleum Company Limited (NNPCL) had agreed to provide the refinery with between 13 and 15 cargoes of Nigerian crude each month, with settlement structured in naira under what has been described as the naira-for-crude deal. The arrangement was intended to help the refinery reduce foreign-exchange exposure.
Even with that framework in place, the refinery still experienced constraints in receiving domestic crude. Those hurdles have played a role in pushing the company to look beyond its initial sourcing assumptions and increase its flexibility in procurement.
In April, Bird—referenced in the reporting as speaking about the refinery’s strategy—said the company wanted to “heavy up the barrel,” indicating an intention to raise the share of heavier crude grades in its feedstock blend. That approach aligns with the broader theme of diversifying crude grades as production becomes more stable and the refinery’s operating window expands.
Oil prices move as tensions flare
Separately, reporting on global crude markets noted that oil prices eased to less than $70 per barrel last week. However, prices turned upward on Monday after the latest strikes involving the United States and Iran, even after the completion of a peace deal.
