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Report: Dangote refinery to start production with 350,000 barrels from December

Report: Dangote refinery to start production with 350,000 barrels from December
November 26
14:10 2023

Aliko Dangote, chairman of Dangote Group,  says his refinery will start production with 350,000 barrels a day.

In an interview with Financial Times on Saturday, Dangote said the refinery is expecting the delivery of the first cargo of about six million barrels next month. 

According to the publication, the refinery will begin production in December should Dangote refinery secure sufficient crude oil and the long-delayed plant works as it is supposed to.

We are starting with 350,000 barrels a day,” the billionaire said.

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TheCable had reported earlier this month that the Nigerian National Petroleum Company (NNPC) Limited is expected to allocate six million barrels of crude oil to Dangote refinery in December 2023.

Production of petroleum products was supposed to commence at the end of July 2023, according to Dangote during the inauguration of his refinery in May, however, it failed to come on stream.

Speaking on the challenges faced in establishing the refinery, the businessman told Financial Times some companies would not have survived what his company encountered.

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The challenges that we faced, I don’t know whether other people can face these challenges and even survive,” Dangote said.

“It is either we sink, or we sail through. And we thank the Almighty that at least we have arrived at the destination.”

Dangote said he is confident NNPC will come through despite rumoìrs of its inability or unwillingness to supply him with the crude his refinery needs.

He said the company had successfully resolved all challenges related to crude oil supply.

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Commenting on NNPC’s stake in Dangote refinery and the possibility of the government-owned firm wanting more than the 20 per cent equity allocated to it, Dangote said he does not “think NNPC needs to buy more shares. I think they are okay with what we’ve given them”.

In the report, Dangote said the refinery would eventually be floated as a separate company, listing it as an independent entity on the Lagos Stock Exchange.

The businessman also addressed criticism raised against him that he has unduly benefited from politicians and has unfair access to foreign exchange.

“Sometimes when people talk about us, Dangote, it’s like the government is holding everybody down and allowing us alone to fly,” he said.

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Dangote’s 650,000 barrels capacity refinery, which cost $19 billion, is said to be Africa’s largest oil refinery and the world’s largest single-train facility.

At the inauguration, Dangote said the facility — which is expected to produce 27 million litres of diesel, 11 million litres of kerosene and 9 million litres of jet fuel — will receive crude from other producers in Nigeria, as well as the country’s state oil company.

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He said the refinery’s priority is to supply petrol to Nigeria before exporting to elsewhere, including the West African region.

Providing an update earlier this month, the billionaire said the Dangote refinery had secured a license to refine more than 300,000 barrels of Nigerian crude per day and will begin to process petrol “soon”.

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Dangote said there were no plans to start the refinery with foreign crude, instead, the refiner will use Nigerian crude.

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