Nigeria's Dangote Refinery, owned by billionaire Aliko Dangote, has taken possession of approximately 13% of the country's crude oil exports, according to a recent report. This development has significant implications for the global crude flow, particularly in the face of sanctions on Russian oil.

The Dangote Refinery, which has a capacity of 650,000 barrels per day, has been relying on expensive crude imports from the United States due to difficulties accessing locally produced crude. This is unusual for an oil-producing nation like Nigeria, which is a significant net exporter of petroleum. In 2024, Nigeria purchased 47,000 barrels of US oil per day, a surge in imports that can be attributed to the Dangote refinery.

Experts suggest that the refinery's reliance on US imports is a result of oil majors preventing it from accessing locally produced crude by selling it at a higher price or claiming it was unavailable. This has led to the refinery acquiring oil from the international market, including the US. The Dangote refinery received its first supply of US WTI in November 2024, and has since received constant shipments from the US.

In an effort to address this issue, Aliko Dangote has set his sights on crude oil exploration, with plans to begin production in 2025. This decision came after a two-month standoff with Nigerian officials over crude delivery. The Nigerian National Petroleum Company Limited has been struggling to provide crude oil to the plant, leading to the refinery's reliance on US imports.

The increased demand for fuel from local refineries may provide some relief to the Nigerian National Petroleum Company Limited, which has a significant debt load due to various crude-for-loan deals. The company's debt obligations are linked to amounts of the country's oil output, and it may be able to fulfill its obligations until 2029.

The Dangote refinery's impact on the global crude flow is significant, particularly in the context of sanctions on Russian oil. The emergence of new refineries in the global south, including the Dangote refinery, has altered the traditional dynamics of the global crude market. As the refinery continues to rely on US imports, it will be interesting to see how this development affects the global energy landscape in the coming years.

In conclusion, the Dangote refinery's possession of 13% of Nigeria's crude oil exports is a significant development that highlights the complexities of the global crude market. As the refinery continues to rely on US imports, it will be important to monitor its impact on the global energy landscape and the Nigerian economy.