Bisola David
The chairman of the Dangote Group, Aliko Dangote, has announced that the refinery will begin operations in December 2023 and that its first target will be 350,000 barrels per day.
He stated this in an interview with the Financial Times on November 25.
Dangote said that the eagerly anticipated refinery will begin operations with 350,000 barrels per day and that an agreement has already been reached for the first cargo, which will consist of around 6 million barrels of crude oil and be delivered in December 2023.
He declared: “We will begin by producing 350,000 barrels per day. I have no idea whether other individuals could overcome the difficulties we encountered and come out on the other side. Either we go under, or we sail through. And we thank Almighty that at least we have arrived at the destination.”
Recall that on November 2, as part of a one-year supply arrangement, the Nigerian National Petroleum Company Limited will provide the Dangote refinery with 6 million barrels of crude oil, or 200,000 barrels of oil per day, starting next month.
Dangote expressed his confidence in the refinery’s potential to reach its peak production of 650,000 barrels per day by the end of 2024 in the interview.
Stressing that the business has overcome every obstacle pertaining to the supply of crude oil, he revealed that the Dangote refinery would eventually be floated as an independent company on the Lagos Stock Exchange.
Speaking more about the refinery project, Dangote stated that in the next 20 years, Nigeria won’t see the emergence of projects of this nature.
He added that the project was completed for posterity’s benefit rather than the company’s need for praise or to minimize costs.
Dangote refuted the notion that the Nigerian National Petroleum Corporation was attempting to acquire a bigger share in the refinery project during the FT interview.
He stated that the refinery is expected to provide a significant amount of revenue per year—about $25 billion, once it is fully operational. Dangote offered assurance that NNPC is happy with the project shares that have already been allotted to them.
The International Energy Agency noted in its World Energy Outlook for October 2023 the major influence anticipated from the Dangote refinery, which boasts a substantial capacity of 650,000 barrels per day.
It is expected that this refinery would be a major factor in the increase of the oil demand, especially in African nations that mostly depend on imported refined energy products.
The paper emphasized the current state of affairs in African countries, which primarily rely on imports of refined energy products.
On the other hand, this environment might change now that the Dangote refinery is operational.
The International Energy Agency noted that Africa currently produces over 7 million barrels of oil per day, of which about 40% is exported.
