Ahead of its opening, Dangote Industries have been approached by three foreign oil firms as well as by the Nigerian National Petroleum Corporation, NNPC for a stake in the forthcoming 650 000 bl/d, refinery, Reuters reports on Friday.
A senior executive at Reuters had relayed data from Devakumar Edwin, group executive director, that all four firms are seeking to secure crude supply agreements that will give them a 20% minority stake in the Dangote refinery as part of a collaboration.
Similar to Nigeria’s NNPC, the others who are from the Western and Middle Eastern are also into trading and producing crude oil.
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Edwin further noted that the Dangote refinery is not seeking equity, that its crude will possibly come from the market.
Dangote is considering firms like Vitol and Trafigura for the supply and transport of crude and petroleum products abroad.
Dangote refinery opening date
Nigeria is Africa’s biggest crude oil exporter, inversely, it imports all its fuel due to moribund state refineries. This is the primary driver of the NNPC’s interest in the stakes of the refinery.
Dangote refinery is scheduled for mechanical completion in 2021 and commissioning by January 2022.
Africa’s richest man Dangote announced the construction of the ongoing refinery in Lekki, in Lagos adding to chains of business including cement and a number of consumer goods.
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What was to be a small refinery later got an upgrade with a prospective starting date in early 2020. However, the pandemic slowed down the near-finished refinery and the group is looking forward to a full operation starting 2022.