India's state refiners are ramping up purchases of Nigerian crude, even as Nigeria's $20bn Dangote Petroleum Refinery increasingly runs on American oil.
Industry sources say Indian Oil Corporation and Bharat Petroleum have bought over two million barrels of Nigerian oil for September and October delivery, alongside cargoes from Angola, Abu Dhabi, and the US.
Meanwhile, data from Kpler shows US crude accounted for 60% of Dangote's July intake—370,000 bpd—while Nigerian grades made up 40%, as the refinery struggles to secure domestic supply despite a naira-for-crude deal. Dangote cites better US pricing and domestic sourcing hurdles as reasons for the shift.
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The refinery, operating at 85% capacity, has exported gasoline to Oman and Ivory Coast and jet fuel to Europe, while still supplying Nigeria's market. With plans to expand to 700,000 bpd, analysts warn full capacity may not be reached until late 2026 due to operational challenges.
Nigeria's upstream sector is seeing increased activity from local producers, with infrastructure projects like the Otakikpo terminal marking new milestones in private crude exports.
