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Dangote Refinery: NNPC To Acquire 20 Percent Equity Stake
The Nigerian National Petroleum Corporation (NNPC) has said that it plans to acquire a 20% minority equity stake in Africa’s biggest oil refining facility, Dangote Refinery, Lagos.
This is to help further ensure an undisrupted supply of petroleum products across the country when the transaction pulls through.
This disclosure was made by NNPC Chief Operating Officer, Refining and Petrochemicals, Mr Mustapha Yakubu, while speaking at the end of a 2-day Nigeria Oil and Gas Opportunity Fair (NOGOF), 2021, tagged: “Leveraging Opportunities and Synergies for Post Pandemic Recovery of the Nigerian Oil and Gas Industry.”
According to Thisday, Yakubu said discussions were already ongoing with the Dangote Group for the acquisition of the stake.
What are we doing there? 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.
That’s 650,000 barrels, going into a single crude distillation unit (CDU). When that comes on board, it will also wet the nation for us.”
Dangote Refinery
The Dangote Refinery is an oil refinery owned by the Dangote Group that is under construction in Lekki, Nigeria. When complete, it will have the capacity to process about 650,000 barrels per day of crude oil, making it the largest single-train refinery in the world. He has invested over 7 billion US dollars.
The refinery is situated on a 6,180 acres (2,500 hectares) site at the Lekki Free Zone, Lekki, Lagos State. It will process about 650,000 barrels of crude oil daily, transported via pipelines from oil fields in the Niger Delta, where natural gas will also be sourced to supply the fertilizer factory and be used in electrical generation for the refinery complex. The project is expected to cost up to $15 billion in total, with $10 billion invested in the refinery, $2.5 billion in the fertilizer factory, and $2.5 billion in pipeline infrastructure.
With a single crude oil distillation unit, the refinery will be the largest single-train refinery in the world. At full production, the facility will be able to produce 50,000,000 litres (13,000,000 US gal) of gasoline and 17,000,000 litres (4,500,000 US gal) of diesel daily, as well as aviation fuel and plastic products. With a greater capacity than the total output of Nigeria’s existing refining infrastructure, the Dangote Refinery will be able to meet the country’s entire domestic fuel demand, as well as export refined products
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