Nigeria Secures Crude Deal with Turkish Refiner for March, April
Turkey’s largest oil refiner, Tupras, has placed orders for Nigerian crude oil cargoes scheduled for March and April, a move that could boost Nigeria’s revenue amid efforts to ramp up exports.
This is according to shipping data from global commodity tracker, Kpler, which noted that although the exact volume of the Nigerian cargoes was not disclosed, the deliveries are expected within a two-month window.
The development comes as Nigeria looks to increase crude oil exports to fund its 2025 budget.
The country relies on oil sales for about 90 per cent of its foreign exchange earnings, with crude revenues projected to fund 56 per cent of this year’s budget.
However, Nigeria’s oil earnings face pressure from shifting global demand.
Indonesia, a key importer of Nigerian crude, recently announced plans to cut back on purchases from other countries while ramping up crude and LPG imports from the United States by around $10bn.
Indonesia’s energy minister, Bahlil Lahadalia, confirmed the move on Tuesday during a media briefing.
Besides Nigeria, Tupras also placed orders for crude cargoes from Guyana, Libya, and Norway for the March-April window, according to Kepler data.
Tupras operates two major refineries located in Izmit and Izmir, with a combined processing capacity of 467,300 barrels per day, according to data from the London Stock Exchange Group.
The company recently resumed purchases of Russian Urals crude, after halting imports earlier this year due to tighter US sanctions.
According to a Reuters report quoting trading sources and shipping data, Tupras returned to the Russian market after prices for Urals crude dropped to their lowest levels since 2023, falling below the $60-per-barrel price cap imposed by the G7, EU, and Australia.
The price cap restricts the use of Western maritime services such as insurance and shipping for Russian oil sold above $60 per barrel. Since October, the U.S. Treasury Department has sanctioned several tankers suspected of violating the price cap.
Tupras was one of the top importers of Russian crude following Moscow’s invasion of Ukraine in 2022, with Russian oil accounting for 65 per cent of Turkey’s total crude imports between January and November 2024.
The company suspended Russian imports in February amid rising pressure from US sanctions announced in early January.
However, trading sources said Tupras is set to receive at least two cargoes of Urals crude for April loading.
One of the vessels, Nissos Christiana, reportedly loaded about 730,000 barrels of Urals crude from the Baltic port of Ust-Luga on April 3 and is expected to arrive at the Tupras-operated refinery in Izmit on April 21, according to Kpler data.
While the second cargo has yet to be confirmed, Tupras is also diversifying its supply sources. Last month, it made its first purchase of Brazilian crude as part of efforts to replace Russian barrels.
Global oil demand, meanwhile, is projected to rise by 730,000 barrels per day this year, even as market uncertainty persists amid shifting geopolitical and regulatory dynamics.
