The chief operating officer of the Nigerian National Petroleum Corporation (NNPC), Mustapha Yakubu has revealed that discussions are ongoing with the Dangote Group for the acquisition of about 20% minority stake in Dangote Refinery.
Yakubu revealed this much at the end of a two-day Nigeria Oil and Gas Opportunity Fair (NOGOF), 2021, adding that the deal was being handled on behalf of the NNPC by the Greenfield Refining Projects Division (GRPD) of the group.
This investment plan is happening 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 and in a bid to further ensure undisrupted product supply to Nigerians when the deal materializes.
“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.”
Reputed to be Africa’s biggest oil refining facility and the world’s largest single-train plant, Dangote Refinery is expected to produce 650,000 barrels per day (bpd) integrated refinery at completion. It is also expected to process a variety of light and medium grades of crude, including petrol and diesel as well as jet fuel and polypropylene.
Worth about $15 billion, the refinery 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.
Similarly, 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, as well as collaborating with Azikel refineries on condensate production