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TotalEnergies strikes supply deal with Dangote on Nigerian refinery

French energy major, TotalEnergies, had actually struck its first supply handle Dangote Refinery in Nigeria, Chief Executive Patrick Pouyanne said on Friday, following a meeting with Africa's richest male, Aliko Dangote.

We satisfied this morning, we made the very first offer between both of us, Pouyanne told a panel at the Africa CEO Forum in Kigali, Rwanda. The 2 CEOs met with our head of trading and we found the method to persuade them to make a deal, he added.

Dangote has been trying to secure crude products for his 650,000 barrels daily (bpd) refinery, the largest in Africa and Europe when it reaches full capacity.

In May, the business put out a tender for 2 million barrels of West Texas Intermediate (WTI) Midland unrefined monthly for a. year beginning in July, a tender document seen revealed.

The oil refinery, which began production in January, expense. $ 20 billion to build. Dangote intends to reverse Nigeria's reliance. on imports for fuel and other refined products even though the. nation is Africa's greatest oil producer.

Dangote said the refinery had sufficient gas, diesel and. aviation fuel to provide the African continent and export to. Brazil.

We started producing jet fuel, we are producing diesel, by. next month, we'll be producing gas. What that will do, it. will be able to take most African crudes, Dangote informed the. panel.

Our capability is too big for Nigeria. It will be able to. supply West Africa, Central Africa and likewise Southern Africa, he. added.

The next phase of the refinery will start early next year,. Dangote stated.

TotalEnergies is among the major producers of crude in. Nigeria alongside Shell, Exxon and Chevron .

(source: Reuters)