While India’s state refiners are increasing their intake of Nigerian crude oil, Nigeria’s new Dangote Petroleum Refinery is relying heavily on imports from the United States.
Market sources told Reuters that Indian Oil Corporation (IOC) recently purchased one million barrels of Nigeria’s Agbami crude for September delivery in a tender awarded to global commodities trader Trafigura. The transaction is part of a broader effort by Indian refiners to secure more barrels from non-Russian sources.
Meanwhile, the $20 billion Dangote Petroleum Refinery in Lagos, Africa’s largest, is turning to the U.S. for most of its feedstock. The facility imported an estimated 10 million barrels in July alone, with operators confirming that American crude now dominates its input, despite a naira-for-crude supply deal with the Nigerian government.
According to industry reports, both IOC and Bharat Petroleum Corporation Ltd (BPCL) have each purchased one million barrels of non-Russian crude for delivery in September and October. This follows growing pressure from Washington for India to cut back on Russian oil purchases.
Since 2022, following Russia’s invasion of Ukraine, Indian refiners had largely stayed away from the spot crude market, taking advantage of discounted Russian shipments instead. That approach shifted in late July when, under U.S. diplomatic pressure - including from former President Donald Trump - state refiners temporarily paused Russian imports.
In all, more than two million barrels of Nigerian crude are slated for shipment to India for September and October. BPCL reportedly secured part of its allocation through direct negotiations for a September arrival, according to sources close to the deals.
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