NNPC To Acquire 20 per cent Stake in Dangote’s Refinery

The Nigerian National Petroleum Corporation (NNPC) is in talks to acquire a 20 per cent stake in the 650,000 barrels per day Dangote refinery.

This was disclosed by an official of the company, S&P Global Platts, which provides benchmark prices for commodity markets around the world, reported Thursday.

The Dangote oil refinery is an integrated project under construction in the Lekki free zone near Lagos.

The pipeline infrastructure at the refinery is said to be the largest in the world with 1,100 kilometres to handle 3 billion standard cubic foot of gas per day. The plant is expected to start commissioning early 2022.

S&P Global Platts quoted an NNPC spokesman as saying, “Negotiations have reached an advanced stage. We are hoping to wrap up the negotiations before the refinery goes on stream.”

“This is a deliberate move to ensure that the risk associated with refinery business does not weigh solely on Dangote Industries, and also a bold statement that the government is ready to encourage private investors in the building refineries,” the spokesman said.

A spokesperson for the NNPC, Kennie Obateru, did not respond to calls and a text message from us.

NNPC recently started repairs of the Port Harcourt refinery after securing financing.

NNPC says it expects the refinery to operate at around 90 per cent of capacity when repairs are completed by 2023.

The decision to repair the refinery has drawn criticisms from analysts who argue the facility should rather be privatised considering its state and the government’s inability to run it in the past.

The government pins its hopes of ending fuel imports largely on the completion of the Dangote refinery.

NNPC recently started repairs of the Port Harcourt refinery after securing financing.

NNPC says it expects the refinery to operate at around 90 per cent of capacity when repairs are completed by 2023.

The decision to repair the refinery has drawn criticisms from analysts who argue the facility should rather be privatised considering its state and the government’s inability to run it in the past.

The government pins its hopes of ending fuel imports largely on the completion of the Dangote refinery.

Source: PREMIUM TIMES