The Nigerian National Petroleum Corporation (NNPC) is in talks to acquire a 20% minority stake in Dangote Refinery, the state oil giant disclosed. The oil refinery, which still under construction, would be the biggest in Africa.
When the deal is concluded and the facility becomes functional, there will be an undisrupted supply of petroleum products across Nigeria, Mustapha Yakubu, the NNPC Chief Operating Officer, Refining and Petrochemicals, said.
He stated that the Greenfield Refining Projects Division (GRPD) of the NNPC is spearheading the negotiations with Dangote Refinery.
Yakubu revealed this 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.”
His words: “We have what we call the Greenfield refinery and the Greenfield Refining Projects Division (GRPD) of the NNPC. What we do, our strategy is to collaborate and seek strategic partnerships with private investors.
“At the moment, we have Dangote Refinery, which is the 650,000 barrels per day capacity, plus a mini 80,000 tonnes per annum petrochemical plant. 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.”
According to him, the NNPC is also partnering with African Refinery in Port Harcourt, a co-location facility, the CNCEC Chinese group, which is interested in building two refineries in Nigeria – the Waltersmith modular plant and Azikel refineries on condensate production.
On the global push for renewables, Yakubu said Nigeria still has a large market for hydrocarbons within the local, domestic and regional spectrum. He believes Africa will continue to rely on fossil fuels for at least 20 years to come.
About Dangote Refinery
The 650,000 barrels per day (BPD) refinery project is owned by the Dangote Group, a conglomerate founded by Aliko Dangote, Africa’s richest man.
The refinery is still under construction in the Lekki Free Zone in Lagos, Nigeria. When completed later in 2021, The project will meet and surpass Nigeria’s refined petroleum product requirement.
The refinery is expected to produce up to 50 million litres of petrol and 15 million litres of diesel a day, about 10.4 million tonnes of the product, 4.6 million tonnes of diesel, and 4 million tonnes of jet fuel per year.