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Nairaland Forum / Nairaland / General / Business / Dangote Refinery Gets 5m Barrels Of Crude Oil From US (13450 Views)
$19 Billion Dangote Refinery Gets Another 1 Million Barrels Crude Oil / Dangote Refinery Secures Permit To Process Over 300,000 Barrels Of Crude / Dangote Refinery Rules Out 2020, As Refinery Gets New Date (2) (3) (4)
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Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by Solidex(m): 4:24pm On Jul 12 |
People don't seem to understand the depth of our problems. Our crude has been booked in exchange for loan and NNPC is still soliciting for more loan to a tune of over $2Billion in exchange for our oil reserve. You don't get it. Your crude is no longer a national property until the loan are fully paid. The only way out, is to either clear our foreign dept as soon as possible ( which is not feasible ) or we increase our margin of oil production to beat the target. 2 Likes |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by CartelKenneth: 4:35pm On Jul 12 |
Devil don finish work for Nigeria đ˘ |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by SenecaTheYonger: 4:39pm On Jul 12 |
No wonder dollar scares 𤣠|
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by Tareq1105: 4:41pm On Jul 12 |
StormpyBee: I wish you know the risk in this sector. Even the life of Dangote is under threat bcoz of importers in Nigeria and sub regional countries like Togo, Benin Republic, Ghana, etc the markets that Dangote intend to serve. |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by Kemadealadire(f): 4:41pm On Jul 12 |
This their economics isn't economicing at all. |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by Blazetrailer: 4:43pm On Jul 12 |
Dey there dey wait......na there you go grow old adioolayi: |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by ysg4real(m): 4:46pm On Jul 12 |
with this news, i think it may make sense for Dangote to do backward integration and start exploring oil himself for his refinery. Sad that an oil producing country cannot supply the refinery. 2 Likes |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by finallybusy: 4:51pm On Jul 12 |
That is two times the daily amount of oil the nation missed from 2011's protests. |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by Gajagojo: 4:51pm On Jul 12 |
erico2k2: You are talking rubbish without facts A thing is cheaper or not is not about explanation It is about facts How much is it it in the market that is the price. The price is a fact it is not an explanation Crude oil prices change every day just like exchange rate and if you want to secure a price you buy what is called a futures contract. That is the way the market operates it cannot change because of Dangote You sell a December delivery today at $100 and when December comes it could be $90 or $130 So refiners have to take a risk and commit to a futures contract or hope there will be unsold product at short notice Do you know how much Dangote is paying without facts you are just talking You know a little and half knowledge is worse and more dangerous than no knowledge The boys in the creek refining crude has nothing to do with low sulphur or cheaper to refine If Nigerian oil was the highest in sulphur continent any where on earth would that stop them? Are they buying the crude? Please try to be logical Sulphur is not the only thing that makes Nigerian oild the highest quality and you have no data on the sulphur content of the crude Dangote is buying Cost of refining depends on so many factors Dangote refinery is set up to refine all types of crude Not all refineries can do that The fact that he invested so much to set up his infrastructure that way tells you he was not planning on being reliant on Nigerian crude The location of the refinery by the sea confirms that he set up so he can receive crude BY TANKER from the sea Not BY PIPELINE from the Delta 1 Like |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by esemes256: 4:56pm On Jul 12 |
coleon: Thank you very much for the great analysis. Dangote is in a tight position. As a business man, he needs input for his business so that he can generate revenue. It just shows how doing business in Nigeria can be quite tricky. 2 Likes |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by ZTsambad: 5:05pm On Jul 12 |
I just pity this nation the war that will come one day will be hard to stomach. Let this nation be playing with our future anyhow I truly pity the heads of those corrupt evils how it will roll from north to south all the monkeys in the zoo will clap tire |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by Gboss247(m): 5:26pm On Jul 12 |
StormpyBee:Comparative advantage is has become rocket science in Nigeria. |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by Gboss247(m): 5:30pm On Jul 12 |
SaturnNick:Are aware that US is the largest producer of crude? 1 Like |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by Gboss247(m): 5:32pm On Jul 12 |
ahmedio2017:Are you aware successful are economies runs on private sectors? |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by Gboss247(m): 5:37pm On Jul 12 |
Nazgul:Oga, serious business takes globally on the derivative market contracts like futures, options and swaps and also OTC like forward contract. |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by Nyne: 5:39pm On Jul 12 |
RealLordZeus: NNCP own 20% of the refinery. Does it mean that nnpc is also buying crude oil from USA ? |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by Gboss247(m): 5:41pm On Jul 12 |
bdon12:A simple research will help a lot, serious are conducted through the derivative market where futures, options and swaps are traded. |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by Gboss247(m): 5:42pm On Jul 12 |
bravehost4u:The only madness here is when you failed to understand comparative advantage. |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by TOMMYS: 5:45pm On Jul 12 |
OkCornel: |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by IrepChrist: 5:46pm On Jul 12 |
DesireV: Do your research very well. |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by Gboss247(m): 5:49pm On Jul 12 |
NADESMAN:You are wrong, oil, gas, diamond, gold, stocks, crypto, forex etc are globally with futures, options and swaps contracts through the derivative market and forward contract through OTC. Running a business with spot markets is simply inviting bankruptcy. 1 Like |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by erico2k2(m): 6:06pm On Jul 12 |
Gajagojo:So amongst the gibberish you wrote up there how does any of your ill points cross out what I have written, so in your multitude of what you called knowledge common sense did not tell you that when you remove Import and export taxes/duties its cheaper to buy same Crude from Nigeria. Besides Bony sweet the other option for Dangote to distillate is Brent which is cheaper. The USA produce same kind of crude Nigeria produce so it would be same cost to distil either US or Nigerian crude. The Point I was trying to make b4 you came with your cockiness and arrogance is simple. It would have been cost effective for Dangote to buy Bony Light than to go to US to buy the same light. The difference here is[b] Logistic cost[/b] key word Logistic cost. The cost of barrel is the same but cost to bring it to Nigeria Dissipates any gains compared to if he got it from the Delta as he wont be importing it. I did say I will keep some terms you might not understand you delve into Sulphur. Now you sound xtreemly silly and naĂŻve to think Dangote refinery was set up to refine all grades of crude, someone who cannot even boost of producing Euro 6 Diesel as we speak Now let me school you a bitThe four primary types of oil areGroup) are as follows, I know you will argue as you have no clue. (1 The Very Light Oils / Light Distillates which include: Jet Fuel, Gasoline, Kerosene, Light Virgin Naphtha, Heavy Virgin Naphtha, Petroleum Ether, Petroleum Spirit, and Petroleum Naphtha. These oils tend to be highly volatile and can evaporate within just a couple of days, which quickly diffuses and decreases toxicity levels. (2 Light Oils / Middle Distillates which include: Most Grade 1 and Grade 2 Fuel Oils and Diesel Fuel Oils as well as Most Domestic Fuels and Light Crude Marine Gas Oils. These oils are moderately volatile, less evaporative and moderately toxic. (3 Medium Oils: Most of the crude oil on the market these days falls into this particular category. Low volatility makes for messier & more complex âclean upsâ and when it comes to the increased toxicity levels. (4 Heavy Fuel Oils which include the heavy crude oils, Grade 3,4,5 and 6 Fuel Oils (Bunker B & C) as well as Intermediate and Heavy Marine Fuels. With these oils there is very slow and little evaporation and therefore toxicity is highly increased. This not only means potentially severe contamination for fish, fowl and fur-bearing creatures, but possible âlong termâ contamination of water and soil as well. What people like you fail to understand is that In its natural, unrefined state, crude oil ranges in density and consistency, from very thin, light weight and volatile fluidity to an extremely thick, semi-solid heavy weight oil. There is also a tremendous gradation in the colour that the oil extracted from the ground exhibits, ranging all the way from a light, golden yellow to the very deepest, darkest black imaginable. For the purpose of having a set, agreed upon âvocabulary,â the petroleum industry often uses references to âGeographical Locationsâ in order to descriptively classify crude oils. This is due to the fact that oil from different geographical locations will naturally have its own very unique properties. These oils vary dramatically from one another when it comes to their viscosity, volatility and toxicity. When Crude oil comes as a commodity to be sold there is actually over 160 types in the commodity market and sold at different prices. But for the purpose of this argument I will dwell on the two i deal with on a daily bases from the Uk and the US. West Texas Intermediate (WTI) is an extremely high quality crude oil which is greatly valued for the fact that it is of such premium quality, more and better gasoline can be refined from a single barrel than from most other types of oil available on the market. The WTI âAPI Gravityâ is 39.6 degrees, which makes it a âlightâ crude oil, with only 0.24 percent sulfur, which makes it a âsweetâ crude oil. The term âAPI Gravityâ refers to the âAmerican Petroleum Institute Gravity, which is a measure that compares how light or heavy a crude oil is in relation to water. If an oils âAPI Gravityâ is greater than 10 then it is lighter than water and will float on it. If an oils âAPI Gravityâ is less than 10, it is heavier than water and will sinks. These combined qualities as well as location make WTI a prime crude oil to be refined in the United States, which is by far, the largest gasoline consuming country on the planet. The vast majority of WTI crude oils are refined in the Midwest and Gulf Coast regions. Even with production of WTI crude oil in decline, WTI is often priced from $5 to $7 higher per barrel than âOPEC Basketâ oil and on average, $1 to $2 higher per barrel than âBrent Blendâ oils. Brent Blend is actually a combination of different oils from 15 fields throughout the Scottish Brent and Ninian systems located in the North Sea. Its âAPI Gravityâ is 38.3 degrees, which makes it a âlightâ crude oil, but clearly not quite as âlightâ as WTI. It also contains about 0.37 percent sulphur, which makes it a âsweetâ crude oil, but then again, not quite as âsweetâ than WTI. Brent Blend is quite excellent for making gasoline and middle distillates, both of which are utilized in large quantities in Northwest Europe, where Brent blend crude oil is most often refined. Brent Blend production, much like that of WTI, is also on the decline, but it remains a major benchmark for other crude oils in Europe or Africa. Brent Blend oil price is often priced at a $4 higher per barrel compared to the OPEC Basket price. OPEC Basket oil is a collective seven different crude oils from Algeria, Saudi Arabia, Indonesia, Nigeria, Dubai', Venezuela and the Mexican Isthmus. Because OPEC oil has a much higher percentage of sulfur within its natural make-up and therefore is not nearly as âsweetâ as WTI or even Brent Blend and since it is also not naturally as âlightâ as well, the prices of OPEC oil are normally consistently lower than either Brent Blend or WTI. However, OPECâs willingness or ability to quickly increase production when necessary makes OPEC a consistent âMajor Playerâ in the oil industry! By the way who in you shallow mind you think when I say buy from Nigeria I meant by pipe, thesame way vesel buy from Nigeria at the export terminal same way Dangote would have bought. Go to koko google aworitse and see howmany ships that young man has in his ship yard. you was talking about prices of oil, here is it.We use these links in trade , https://markets.businessinsider.com/commodities/oil-price |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by Gboss247(m): 6:07pm On Jul 12 |
erico2k2:All those factors you are irrelevant, because what is considered in international trade is comparative advantage. |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by BarrElChapo(m): 6:09pm On Jul 12 |
StormpyBee: Ppogba what do you have to say ? |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by erico2k2(m): 6:20pm On Jul 12 |
IrepChrist:This is street talk, Dem say talk.The USA is the larges oil producer in the whole world.36 states in the USA produce oil,you can imagine how vast that is.in 2023 the USA produced 21.9 million Barrels of oil Saudi is number two and Russia is number three then canada followed by China the iran with brazil at number seve, even the UAE is number 8 with 4.6million barresl. U can check here https://investingnews.com/daily/resource-investing/energy-investing/oil-and-gas-investing/top-oil-producing-countries/ |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by erico2k2(m): 6:21pm On Jul 12 |
StormpyBee:check where the news came from and its source. |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by RealLordZeus(m): 6:23pm On Jul 12 |
Nyne:Indirectly |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by Teymanhenry(f): 6:25pm On Jul 12 |
reiddecuti: Are you aware that Dangote is complaining that Nigeria and it's marketers have refused to sell him crude oil that they prefer exporting to foreign buyers? |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by ahmedio2017(m): 6:34pm On Jul 12 |
Gboss247: Lolzzzzzzzz u really made me laugh. You wanna give USA as instance ba? Privatisation is meant for developed country and not developing country like ours. That is built on corruption... |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by erico2k2(m): 6:35pm On Jul 12 |
Gboss247:Bross i am a flued Engineer by profession in the Uk,I facilitate the comprehensive flow of any fluid on shore and offshore in the Uk upstream and down stream sector. I am not new to this topic, I have at least 17 years on this. . How does Dangote buying Oil from the USA gives him that advantage? producing crude in Nigeria is very expensive yet in the open market it is sold at same price as of those where Oil is easily and cheaply produce. Oil trade is global and sold at the Brent crude bench mark. Won't it have been more rewarding saying the USA is at gain here? Meaning the advantage is with the USA not the Nigerian buyer?? |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by erico2k2(m): 6:36pm On Jul 12 |
Teymanhenry:Reason is simple, they can manipulate the figures when it goes to international coys. |
Re: Dangote Refinery Gets 5m Barrels Of Crude Oil From US by erico2k2(m): 6:37pm On Jul 12 |
Gboss247:I thin you just hear this grammar the 1st time E dey sweet you! |
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