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India Buys More Nigerian Oil as Dangote Turns to US Crude
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Dangote refinery relies on US crude for 60% of July intake.
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Competitive pricing and domestic supply gaps drive sourcing shift.
India’s state refiners have ramped up purchases of Nigerian crude, even as the Dangote Petroleum Refinery increasingly turns to US oil to power its operations.
Industry sources confirmed that Indian Oil Corporation recently bought one million barrels of Nigeria’s Agbami crude for September delivery, while Bharat Petroleum also secured Nigerian grades alongside other non-Russian supplies.
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EKO HOT BLOG reports that the shift follows US pressure on India to scale back Russian oil imports, prompting refiners to diversify. Reuters reported that over two million barrels of Nigerian crude are scheduled for Indian delivery in September and October.
Meanwhile, the $20bn Dangote Refinery imported an average of 10 million barrels in July, with US crude making up 60 per cent of its 590,000 barrels per day intake the first time American oil has overtaken Nigerian supply at the plant.
Nigerian grades accounted for 220,000 bpd, mainly Amenam, Bonny Light, and Escravos. Analysts attribute the trend to competitive US pricing, difficulties in securing adequate domestic crude, and global market dynamics.
Kpler data shows Dangote’s crude inventories rose to 6.73 million barrels in July, with a portion stored for future use. Despite intentions to prioritise Nigerian crude under the Domestic Crude Supply Obligations, the refinery’s sourcing appears driven by commercial advantage.
The plant, now operating at 85 per cent capacity, produces mostly gasoline for domestic use, with some exports to Oman, Ivory Coast, and Europe. Aliko Dangote recently stated the refinery had exported one million tonnes of petrol in 50 days, positioning Nigeria as a net exporter of refined products.
Analysts caution, however, that full capacity may not be achieved until late 2026 due to operational and maintenance challenges.
