EXCLUSIVE-Nigeria’s Dangote refinery is reselling crude, sources say

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LONDON/BRUSSELS, July 26 (Reuters) – Nigeria’s major Dangote oil refinery is reselling cargoes of U.S. and Nigerian crude, four trade sources familiar with the matter said on Friday.

Three of the sources said the reoffer was linked to technical problems at the refinery. A Dangote executive, asked about the offers and talk in the market that the refinery is having operational issues affecting the crude distillation unit, said the CDU is in operation. He did not immediately respond when asked about the crude offers.

The 650,000 barrel-per-day refinery, located near Lagos, started operations earlier this year.

The sources said cargoes of Nigerian Escravos and Forcados were among the crude grades offered as well as U.S. WTI Midland.

Crude prices added to an earlier decline after the news, with Brent crude falling as much as 2.5% towards $80 a barrel. Such resales by refineries are quite rare but not unknown, traders said. (Reporting by Ahmad Ghaddar, Julia Payne and Libby George and Isaac Anyaogu in Lagos, editing by Alex Lawler and Louise Heavens)

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