French oil and gas company TotalEnergies has secured its first supply agreement with Dangote Refinery in Nigeria, reported Reuters.
The announcement came from TotalEnergies CEO Patrick Pouyanne after discussions with billionaire and industrialist Aliko Dangote.
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Dangote has been actively seeking crude supplies for his refinery, which is expected to process 650,000bpd, making it the largest in Africa and Europe at full capacity.
In May, Dangote Refinery issued a tender for two million barrels of West Texas Intermediate (WTI) Midland crude monthly for a year starting in July, according to a tender document obtained by the publication.
The refinery, which began production in January, represents a $20bn investment.
Dangote expressed confidence that the refinery could meet the demand for gasoline, diesel and aviation fuel across Africa and even export to Brazil.
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By GlobalDataSpeaking to the panel at the Africa CEO Forum in Kigali, Rwanda, Dangote said: “We started producing jet fuel, we are producing diesel, by next month, we will be producing gasoline. What that will do, it will be able to take most African crudes.
“Our capacity is too big for Nigeria. It will be able to supply West Africa, Central Africa and also Southern Africa,” he added.
The next development phase of the refinery is slated to commence early next year.
TotalEnergies is one of the key crude producers in Nigeria alongside companies such as Shell, Exxon and Chevron.
Last month, the company enhanced its stake in the Moho field offshore the Republic of Congo by signing a deal with Trident Energy to acquire an additional 10% interest.
This agreement also entails TotalEnergies divesting its 53.5% interest in the Nkossa and Nsoko II licences to Trident Energy.
The Moho field, operated by TotalEnergies EP Congo, is located 80km from Pointe Noire’s coast.
The field’s production facilities, which include two floating production units, Alima and Likouf, boast a combined output of around 100,000 barrels of oil equivalent per day.
