Refineries in India are buying Nigerian crude while the country’s Dangote Petroleum Refinery is largely running on American oil, The PUNCH reports.
In a twist that underscores the complexities of global oil trade, India’s state refiners are snapping up Nigerian crude oil while Africa’s largest refinery, located in Nigeria, is increasingly importing crude from the United States, a development that oil sector operators described as “oil trade irony” on Sunday.
Industry sources told Reuters that Indian Oil Corporation recently bought one million barrels of Nigeria’s Agbami crude for September delivery in a tender awarded to global trader Trafigura. The purchase is part of a broader sourcing spree that has seen Indian refiners secure millions of barrels from non-Russian sources.
Ironically, while Indian refiners are boosting purchases of Nigerian grades, the $20bn Dangote Petroleum Refinery in Lagos is relying heavily on US imports to feed its processing units. The refinery imported an average of 10 million barrels in July, saying it was increasingly relying on the US for its feedstock despite the naira-for-crude deal with the Federal Government.
Reuters reported that Indian Oil Corp and Bharat Petroleum have bought a million barrels of non-Russian crude for delivery in September and October after the US pressured India to halt purchases from Russia.
Indian state refiners had been largely absent from the spot market since 2022, instead becoming one of the few purchasers of cheaper Russian crude after Russia invaded Ukraine. However, they paused Russian purchases in late July after pressure from US President Donald Trump.
Over two million barrels of crude oil were said to have been bought from Nigeria for September and October deliveries in India. India’s second biggest state refiner BPCL bought barrels of oil through negotiations for September arrival, a source familiar with the purchases said.
