This is looking great for Dangote Refinery after Nigeria indicated that it would take 20% equity in the refinery: ‘Yes, the Nigerian government through NNPC, the national oil corporation, is planning to acquire 20% of equity in Dangote Refinery: “I can tell you today that we are seeking to have a 20 per cent minority stake in Dangote Refinery as part of our collaboration and you know that there’s a huge quantity of crude for that refinery.”’ Now, other entities around the world are coming.
Four oil firms including Nigeria’s state-oil company have approached Dangote Industries to acquire a stake in Africa’s largest oil refinery, a senior executive told Reuters on Friday.
Devakumar Edwin, group executive director, said the firms from Western and Middle East countries and involved in trading and crude production were looking to secure crude supply agreements, a similar objective to that pursued by the Nigerian National Petroleum Corporation (NNPC).
“They are seeking to have 20% minority stake in Dangote refinery as part of collaboration … so that they can sell their crude,” Edwin told Reuters by telephone.
He said Dangote refinery is not looking for equity and the company wants to be able to secure crude from the market.
Nigeria, Africa’s biggest crude oil exporter, imports virtually all of its fuel due to moribund state refineries, which has prompted the state oil company’s interest in the 650,000 barrel per day (bpd) Dangote refinery.
NNPC’s spokesman, speaking to Reuters in a phone interview, said the corporation had considered the idea of acquiring a stake in the $19.5 billion oil refinery project owned by Africa’s richest man, Aliko Dangote.
Edwin said the refinery is scheduled for mechanical completion this year with commissioning by January 2022.
When you solve major challenges in markets, most times, opportunities come. As many oil refiners close shops, entities like Dangote Refinery will have transient opportunities before the world moves into the post-petroleum era.
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