Nigerian National Petroleum Corporation looks to acquire minority stake in Dangote refinery

The Nigerian National Petroleum Corporation (NNPC) has declared an interest in acquiring a 20-percent stake in the soon-to-launch Dangote Oil Refinery.

Nairametrics reported NNPC Chief Operating Officer, Refining and Petrochemicals, Mustapha Yakubu as announcing the news while speaking at the 2021 Nigeria Oil and Gas Opportunity Fair. This year’s fair was themed: “Leveraging Opportunities and Synergies for Post Pandemic Recovery of the Nigerian Oil and Gas Industry.”

According to Yakubu, discussions have already been initiated regarding the acquisition. The move could see the state company acquiring a minority stake in the company.

“I can tell you today that we are seeking to have a 20-percent 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,” Yakubu said.

The Dangote Oil Refinery is a 650,000-barrels-per-day integrated refinery and petrochemical project under construction in the Lekki Free Trade Zone in Lagos, Nigeria.

The refinery will produce about 50 million liters of petrol and 15 million liters of diesel per day, approximately 10.4 million tonnes of petrol, 4.6 million tonnes of diesel and 4 million tonnes of jet fuel annually. Furthermore, the company will move byproducts from the refinery to be utilized as raw materials for a Dangote Group-owned fertilizer plant.

The mega-plant, which is nearing the completion stage, is owned by Nigerian billionaire and Africa’s wealthiest man Aliko Dangote. When completed, it will be Africa’s most extensive oil refining facility and the world’s biggest single-train facility.