Dangote Refinery will establish an oil trading unit that will help source feedstock for its 650,000 barrels per day plant on the outskirts of Lagos, Reuters reported on Tuesday, citing sources.
The oil trading arm, likely to be situated in London, takes away the need to hire commodity traders for crude supply and related services, which could help scale back costs.
While it could soften spending pressure for a refinery just starting to find its feet in crude oil processing, it is a blow to big names like Vitol and Trafigura which, according to the sources, have had transactions with the refinery.
