TheCable

The Nigerian National Petroleum Corporation (NNPC) says it has initiated talks with the Dangote Group about purchasing a 20 percent minority equity stake in its 650,000 barrels per day (bpd) refinery.

The Dangote Refinery, currently under construction in the Lekki Free Zone, Lagos, is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility, upon completion.

ThisDay reports that Mustapha Yakubu, NNPC chief operating officer, refining and petrochemicals, disclosed this on Wednesday at the 2021 edition of the Nigerian Oil & Gas Opportunity Fair (NOGOF).

He said the deal will further ensure undisrupted petroleum products supply to Nigerians.

“We have what we call the green field refinery and the Greenfield Refining Projects Division (GRPD) of the NNPC. What we do, our strategy is to collaborate and seek strategic partnerships with private investors,” Yakubu said.

“At the moment, we have Dangote Refinery, which is the 650,000 capacity barrels per day plus a mini 80,000 tonnes per annum petrochemical plant.

“What are we doing there? I can tell you today that we are seeking to have a 20 per cent 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.”

He also said that despite the global push for renewables, Nigeria has a local, domestic and regional market for hydrocarbons.

According to him, Africa will continue to rely on fossil fuels for at least 20 years.

In February, Devakumar Edwin, the company’s executive director of capital projects and portfolio management, said petroleum products from the Dangote Refinery will hit the market by early 2022.