Refineries in India are purchasing Nigerian crude while Nigeria’s Dangote Petroleum Refinery largely relies on American oil.
Indian Oil Corporation recently bought one million barrels of Nigeria’s Agbami crude for September delivery from global trader Trafigura, as part of a wider move by Indian refiners to secure millions of barrels from non-Russian sources. Bharat Petroleum also bought non-Russian crude for September and October after US pressure to halt Russian imports.
Over two million barrels of Nigerian oil were purchased for September and October deliveries to India, alongside Angola Girassol, US Mars, and Abu Dhabi Murban.
Meanwhile, the $20bn Dangote Refinery in Lagos imported an average of 10 million barrels in July, with US crude making up 60% (370,000 bpd) of its 590,000 bpd intake, overtaking Nigerian supply for the first time. Nigerian grades accounted for 40% (220,000 bpd), mainly Amenam, Bonny Light, and Escravos.
Industry analysts say US West Texas Intermediate (WTI) has been more competitively priced than Nigerian grades, partly due to low demand in Asia and higher OPEC+ output. Dangote has faced difficulties sourcing domestic crude under the Domestic Crude Supply Obligations.
The refinery, currently at 85% capacity, aims to reach 700,000 bpd, though full utilisation before Q4 2026 is considered unlikely due to mechanical and maintenance challenges. It also imported about 22,000 tonnes of condensate naphtha in early July to feed its gasoline production unit, which has faced technical issues since January.
Nigeria’s crude and condensate supply is expected to average 1.65 mbd for the rest of the year. Local producers, including Seplat, are working to boost output through well restarts and new drilling campaigns. Infrastructure expansion includes Green Energy’s Otakikpo terminal, Nigeria’s first privately built onshore terminal in over 50 years, and new shipments from Conoil and Renaissance Africa Energy following Shell asset acquisitions.