The Dangote Petroleum Refinery sourced an estimated 116 million barrels of crude oil from Nigeria in the 12 months ended June 30, 2026, with supplies coming from NNPC Limited, international oil companies, and domestic producers, according to the refinery’s initial public offering prospectus.
The prospectus stated that approximately 60 per cent of the refinery’s crude feedstock was sourced from Nigeria through term contracts with the Nigerian National Petroleum Company Limited, including under the Federal Government’s crude-for-naira programme, as well as spot purchases from international oil companies and domestic producers.
During the 12-month period, the refinery processed approximately 26.4 million metric tonnes of crude feedstock.
Using a standard conversion factor of 7.33 barrels per metric tonne, the 26.4 million tonnes translates to approximately 193.5 million barrels. Applying the prospectus’ 60 per cent Nigerian sourcing figure gives an estimated 116.1 million barrels sourced locally from July 2025 to June 2026.
The prospectus, however, did not provide a breakdown showing how much of the estimated 116.1 million barrels came specifically from NNPC, IOCs or domestic producers.
It stated, “The Issuer sources crude feedstock from a combination of domestic and international suppliers.
Approximately 60 per cent of the Issuer’s crude feedstock is sourced from Nigeria through term contracts with NNPC Limited, including under the Federal Government’s crude-for-naira programme, as well as spot purchases from international oil companies and domestic producers.”
The company added that the crude-for-naira programme could help reduce its foreign exchange requirements by allowing eligible crude purchases to be settled in local currency.
“Pursuant to the DCSO framework and the terms of the Issuer’s agreement with NNPC Limited, the Issuer has access to crude supply volumes of up to 350,000 barrels per day, subject to availability,” the prospectus stated.
The disclosure provides fresh details of the refinery’s feedstock strategy amid continuing concerns over the availability of sufficient Nigerian crude to support its operations.
Rather than depending entirely on domestic crude, the refinery sourced the remaining 40 per cent of its requirements internationally.
“The balance of the Issuer’s crude oil requirements is sourced through purchases in the international spot market and under various supply arrangements with international counterparties,” the prospectus stated.
The refinery said the international sourcing arrangement allowed it to broaden its feedstock options and respond to changing market conditions.
“The Issuer’s procurement model enables it to source crude oil of multiple domestic and international origins and to select from a broad range of crude grades based on prevailing market conditions and refinery economics.
“This flexibility supports feedstock diversification and reduces reliance on any single supplier, source or delivery route,” it stated.
The prospectus disclosed that the refinery had processed 36 different crude grades as of June 30, 2026, sourced from Africa, South America, the United States and the Middle East.
It did not, however, identify the individual countries from which the crude grades originated. The refinery said its choice of crude was determined partly by the economics of processing each grade rather than simply by availability.
“Crude grades are evaluated using the Issuer’s proprietary linear programming model, which is managed by its economics and planning team.
“The LP model assesses the expected gross refining margin associated with each crude grade based on the refinery’s configuration, anticipated product yields, operating constraints and prevailing market prices for refined products,” the prospectus said.
It added that the results were used to determine the economic value of individual crude grades and guide negotiations with suppliers. The prospectus also revealed that Dangote could pay more for some grades when their characteristics were expected to produce higher refining margins.
“Accordingly, certain crude grades may be purchased at a premium when their refining characteristics are expected to generate superior refining margins, while other grades may be acquired at a discount when their economic value to the refinery is lower,” it stated.
The refinery’s sourcing model also reduces its dependence on physical pipelines directly connecting it to oil-producing fields.
The Issuer said it does not rely on a dedicated upstream pipeline connection to oilfields for the delivery of crude oil and has, therefore, reduced its exposure to disruptions in upstream pipeline operations, saying, “Crude oil is delivered through marine vessels using the Issuer’s offshore SPMs and associated onshore pipeline infrastructure.”
The prospectus further stated that about 60 per cent of the refinery’s crude feedstock in 2025 was sourced from Nigerian grades, with international suppliers accounting for the balance. It was received through marine delivery infrastructure.
On its relationship with NNPC, the refinery said it had established arrangements to access domestic crude, although the supply was subject to availability and the terms of its agreements.
“The Issuer has established crude oil supply arrangements with NNPC Limited, including under the DSCO framework. These arrangements provide access to domestic crude supply, subject to availability and the terms of the relevant agreements,” the prospectus stated.
The company said it also relied on international oil companies, domestic producers and other international suppliers. “In addition, the Issuer sources crude oil through spot purchases from international oil companies and domestic producers, as well as through various agreements with international suppliers.
“These arrangements support diversification of feedstock sources and access to global crude markets,” it stated.
Despite having multiple sources, the refinery warned investors that its supply arrangements did not guarantee uninterrupted access to crude.
It identified several risks, including suppliers failing or refusing to honour delivery commitments, operational disruptions at upstream production facilities, restrictions imposed by oil-producing countries and security incidents affecting oil infrastructure in the Niger Delta.
“Although the Issuer has entered into supply arrangements and may source crude from multiple suppliers, there can be no assurance that such arrangements will ensure uninterrupted supply of crude oil to the Refinery,” the prospectus stated.
The refinery said it could also be forced to change the type of crude it processes if its preferred grades became unavailable.
“The Issuer may be required to source alternative crude blends if its preferred grades become unavailable. Prolonged reliance on alternative feedstock may affect refinery yields, operating efficiency or refining margins,” it stated.
The company warned that inadequate crude supplies could ultimately affect its production costs and profitability.
“If the Issuer is unable to secure adequate volumes of crude oil at competitive prices, or if supply disruptions result in operations below design capacity, this could lead to reduced throughput, increased per-unit production costs and reduced refining margins,” the prospectus stated.