Dangote Refinery Targets 500,000-Barrel Daily Production in July, Eyes December Stock Market Debut
- The Dangote Refinery has disclosed that it plans to increase its production output to almost full capacity by next month
- Aliko Dangote, in a recent interview, revealed that the refinery may likely list on the Nigerian stock market by December
- The refinery intends to end Nigeria's importation of petrol when it starts functioning at full capacity of 650,000 barrels per day output
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.
The Dangote Refinery has announced intentions to reach a production capacity of 500,000 barrels per day by the end of July, with the goal of achieving its maximum capacity of 650,000 barrels per day by the end of the year.
Aliko Dangote, chairman of the Dangote Group, announced this in a recent interview with the Africa Report.
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Dangote Refinery sets sights on increased production
He clarified that the importation of US oil is not meant to replace Nigerian oil, noting that the 24 million barrels from the US equate to merely two shipments per month, constituting 10% of the refinery's full capacity demand.
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Earlier, Legit.ng reported that during the recent Africa CEO Summit in Rwanda, Aliko Dangote pledged that the Dangote Refinery would eliminate the monthly importation of approximately 1 billion litres of premium motor spirit into Nigeria once it begins selling the product in June.
He mentioned that, according to the refinery's plans, Nigeria would no longer need to import petrol starting next month.
Dangote also asserted that his refinery is capable of meeting the petrol and diesel demands of West Africa, in addition to fulfilling the continent's aviation fuel requirements.
Dangote Refinery to list on Nigeria's stock exchange
Aliko Dangote stated that, unless there are any last-minute changes, the $20 billion Dangote Oil Refinery is set to be listed on the Nigerian Stock Exchange by December 2024.
As the chairman of the Dangote Group, Dangote expressed his desire for Nigerians, Africans, and other investors to become shareholders in this new venture, emphasising his wish for them to participate in what he described as a historic development.
He said:
“The listing, most likely, I won’t be surprised if we list (on the Nigerian Stock Exchange) by the end of this year. We will do that. You know it is new and I think we would like to allow Nigerians, Africans, and other investors to join in making this historic move.”
The refinery, set to become the largest in Africa and Europe once it reaches full capacity, has begun selling diesel and aviation fuel, although its petrol has not yet entered the market.
In April, Dangote significantly reduced the price of diesel from approximately N1,500 to N1,000 per litre.
In January, the Dangote Group announced the registration of oil marketers as official distributors, including the Depot and Petroleum Products Association of Nigeria (PETROBAN), Major Oil Marketers Association of Nigeria (MOMAN), and the Independent Association Petroleum Marketers Association of Nigeria (IPMAN).
Meanwhile, Nigerians are eagerly anticipating the availability of petrol, the primary fuel used for transportation and alternative power generators.
Speaking on the matter, Tunji Oyewole, a capital market analyst, told Legit.ng that the Dangote Refinery's listing would attract huge funds to Nigeria's stock exchange.
He said:
"Listing the refinery on the stock exchange would draw foreign portfolio investment to the country, boosting foreign exchange reserves and providing Nigerians with the chance to benefit from the substantial wealth generated by the refinery."
Dangote secures oil supply from TotalEnergies
In related news, Legit.ng reported that leading French energy company TotalEnergies had finalised an agreement to supply the Dangote Refinery with crude oil.
This announcement followed a meeting between Aliko Dangote and Patrick Pouyanne, CEO of TotalEnergies.
Pouyanne shared at the Africa CEO Forum in Kigali, Rwanda, that the two executives have progressed towards finalising the deal.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
