Dangote Speaks on Next Step, Targets As Refinery Begins Processing of 1m Barrels of Crude Oil
- Dangote Refinery has confirmed receiving its first one million barrels of crude cargo to begin the operation
- The crude was discharged at the refinery’s terminal located at Lekki Free Zone near the Lekki Lagoon
- Despite being an oil-rich nation, Nigeria has been unable to refine its products and has relied on importation for years.
Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
The Dangote Petroleum Refinery and Petrochemicals plant management said it has received 1 million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited.
This was disclosed in a statement on Friday, November 8, 2023.
Source: Facebook
The delivery of the crude indicates that Nigeria is getting closer to being able to produce fuel itself again.
PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!
Dangote refinery management speaks
Speaking on the development, Aliko Dangote, President of Dangote Group, described the delivery of crude oil as a significant milestone.
He noted that the development was a step towards boosting Nigeria’s domestic refining capacity and attaining energy security.
His words:
“This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects.
"Our focus over the coming months is to ramp up the refinery to its full capacity. I look forward to the next significant milestone when we deliver the first batch of products to the Nigerian market.”
The next step for Dangote
With the receipt of the first crude oil, the focus now shifts to the following stages of the project.
According to Dangote Group, the 1 million crude from Shell would be used for an initial test of the facility’s capabilities before processing diesel, aviation fuel, liquefied petroleum gas, and, later, premium motor spirit also known as petrol starts.
Reacting to the development of Andrew Alli, former CEO of the Africa Finance Corporation (AFC) said:
“This is good news. The volumes mentioned are small so it implies that they are being used for testing rather than full-on production.
“But an important step. The refinery as I have said “severally” will not have much of a material positive effect on fuel prices or FX but it will increase the value added and the economic complexity in our economy, both of which are good things”.
Legit.ng understands that the Dangote refinery is expecting an addition five million barrels of crude oil from various suppliers.
The Nigerian National Petroleum Company Limited will supply the next four cargoes in two to three weeks, and ExxonMobil will supply the final six cargoes.
Aliko Dangote speaks on refinery production date, discloses first target
Ealier, Legit.ng reported that Dangote confirmed that his 650,000-capacity refinery is ready to pump the first refined petroleum products this December.
The billionaire revealed that the first target is to produce 350,000 barrels of refined petroleum products daily from the facility.
Also, the facility will start producing its total capacity of 650,000 barrels per day in 2024, which IMF doubts.
PAY ATTENTION: Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!
Source: Legit.ng
