TheCable

Dangote Group says three oil firms from Western and Middle East countries have initiated talks to buy a stake in its 650,000 barrels per day (bpd) refinery.

Devakumar Edwin, group executive director at Dangote Industries Limited, confirmed this in a recent interview with Reuters.

The Nigerian National Petroleum Corporation (NNPC) had announced that it is in talks to purchase a 20 percent minority equity stake in Dangote refinery.

Edwin told the news agency that the oil firms, who are also involved in trading and crude production, are looking to secure crude supply agreements.

According to Reuters, discussions between these three oil firms and Dangote Group is a similar objective pursued by NNPC.

Edwin said: “They are seeking to have 20% minority stake in Dangote refinery as part of collaboration … so that they can sell their crude.”

He said Dangote refinery is not looking for equity and the company wants to be able to secure crude from the market.

He explained that Nigeria lost its biggest customer — the United States — after it started producing shale oil.

The U.S. is now pushing into some of Nigeria’s most valued markets, Edwin said.

Edwin further said the refinery is scheduled for mechanical completion in 2021 with commissioning by January next year.

Upon completion, the Dangote Refinery is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility.