Oando’s Petrol Cargo Sales Plunge to Zero on Dangote Refinery

Oando, a Nigerian energy group listed in Lagos and Johannesburg, recorded zero petrol cargo sales in the first six months of the year as Dangote refinery ramped up the supply of fuel into the domestic market.

The company said seven petrol cargoes were traded in the same period of 2024, adding that the decline witnessed this year reflected “continued weakness in market demand following the removal of fuel subsidies, increased local refinery output, and FX-related constraints impacting participation”.

In September last year, Dangote refinery, the country’s biggest with a capacity of 650,000 barrels per day, started producing petrol, also known as premium motor spirit (PMS) in Nigeria.

“Our trading segment faced headwinds which exerted pressure on the entity’s revenue and the group’s topline as a result of declining PMS imports into the country due to rising local refining capacity from the Dangote Refinery, a positive development that enhances Nigeria’s energy security and self-sufficiency,” Wale Tinubu, its group chief executive said on Friday in an earnings release.

In response, the company diversified its crude offtake sources, optimised trade flows, and expanded into LNG and metals, he added.

Oando said its trading division’s near-term focus has remained on reinforcing operational resilience, strengthening relationships with key counterparties, and optimising current trade flows.

“These efforts have yielded steady gains, laying the groundwork for an anticipated pickup in refined product trading in H2 2025, as market conditions stabilise and pipeline opportunities crystallise,” Oando said. “Progress also continues on the development of offtake-linked financing structures, with long-term arrangements expected to unlock additional volumes and support margin expansion.”

Commercial initiatives to grow market share across West Africa remain active, alongside strategic moves into gas trading and preliminary engagement in the metals space, aligned with the group’s broader diversification ambitions, it added.

The company said a total of 14 crude oil cargos with 12.88 million barrels were traded during the period, up from 10 cargos (10.63 million barrels) a year earlier, driven by “sustained momentum under Project Gazelle”.

“Higher crude volumes helped offset the decline in PMS activity, with new pre-financing structures progressing to support future growth,” it said.