NNPC Seeks To Acquire 20% Stake In Dangote Refinery

NNPC Seeks To Acquire 20% Stake In Dangote Refinery
NNPC Seeks To Acquire 20% Stake In Dangote Refinery
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The Nigerian National Petroleum Corporation (NNPC) has expressed interest in purchasing a 20 per cent minority equity stake in Dangote Refinery, Lagos, reputed to be Africa’s biggest oil refining facility and the world’s largest single-train plant.

Africa Daily News, New York gathered that the 650,000 barrels per day (bpd) integrated refinery, expected to process a variety of light and medium grades of crude, including petrol and diesel as well as jet fuel and polypropylene is owned by Nigeria’s Dangote Group and is worth about $15 billion.

It is designed to produce up to 50 million litres of petrol and 15 million litres of diesel a day, roughly 10.4 million tonnes of the product, 4.6 million tonnes of diesel, and 4 million tonnes of jet fuel per year, in addition to having a fertiliser plant, which will utilise the refinery by-products as raw materials.

Read Also: NNPC Denies Financial Distress Amid Concerns Over Letter To AGF

NNPC Chief Operating Officer, Refining and Petrochemicals, Mr Mustapha Yakubu, unfolded the investment plans yesterday at the end of a two-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.”

He spoke just as the Department of Petroleum Resources (DPR) has said it is targeting to generate and remit about N900 billion into the Federation Account in the second quarter of 2021.

Yakubu said discussions were already ongoing with the Dangote Group for the acquisition of the stake.

He stated during the virtual event that the collaboration will further ensure undisrupted product supply to Nigerians when the deal materialises.
He added that one of its divisions, the Greenfield Refining Projects Division (GRPD) was handling the negotiations.

He said: ‘We have what we call the green field 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 capacity barrels per day 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 corporation is also interested in partnering with the 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, in addition to collaborating with Azikel refineries on condensate production.

 

AFRICA DAILY NEWS, NEW YORK

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