Aliko Dangote Offers to Sell Multibillion-Dollar Oil Refinery to NNPC Amid Dispute.
Africa’s wealthiest man, Aliko Dangote, has expressed his willingness to transfer ownership of his multibillion-dollar oil refinery to the state-owned energy company NNPC Limited. This announcement comes amidst a new dispute with a key equity partner and ongoing conflicts with regulatory authorities in Nigeria.
The refinery, with a capacity of 650,000 barrels per day, began operations last year after a decade of construction and a total cost of $19 billion, significantly exceeding the initial estimate. It was designed to reduce Africa’s biggest oil producer’s dependence on imported fuel and save up to 30 percent of the foreign exchange spent on imports.
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Dangote, in an exclusive interview with PREMIUM TIMES on Sunday, said, “Let them (NNPCL) buy me out and run the refinery the best way they can. They have labeled me a monopolist. That’s an incorrect and unfair allegation, but it’s OK. If they buy me out, at least their so-called monopolist would be out of the way.”
He further added, “We have been facing a fuel crisis since the 70s. This refinery can help resolve the problem, but it seems some people are uncomfortable with my involvement. So I am ready to let go and let the NNPC buy me out and run the refinery.”
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Dangote’s significant investment in oil and gas follows his relatively smooth success in Nigeria’s cement, salt, and sugar industries. However, his venture into the oil sector has faced challenges. The refinery, set to release its first petrol to the Nigerian market in August, has been operating at just above half capacity since starting refining operations in January. This is partly due to difficulties in sourcing crude from international producers, who either demand high premiums or claim the crude is unavailable.
According to S&P Global Platts, NNPC had supplied only 6.9 million barrels of oil to the refinery as of May since last year, reflecting the strained relations between NNPC and Dangote Refinery.
Aliko Dangote Offers to Sell Multibillion-Dollar Oil Refinery to NNPC Amid Dispute.
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