Aliko Dangote Speaks on Refinery Production Date, Discloses First Target
- The Dangote refinery will finally begin production in December as scheduled
- Dangote confirmed this during an interview with the Financial Times on Saturday, November 25, 2023
- He said all the challenges to starting production at the refinery have been resolved
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
Aliko Dangote, Chairman of the Dangote Group, has confirmed that his 650,000-capacity refinery is ready to pump the first refined petroleum products this December.
The billionaire revealed that the first target is to produce 350,000 barrels of refined petroleum products daily from the facility.
Source: UGC
Dangote discloses challenges to starting production
Dangote revealed this in an interview with the Financial Times on Saturday, November 25, 2023.
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He said the refinery, which has missed two production deadlines, will begin with 350,000 barrels daily, stating that a deal had already been reached for the first cargo of about six million barrels of crude oil delivery in December 2023.
Dangote said:
"We are starting with 350,000 barrels a day. I don't know whether other people can face our challenges and even survive. It is either we sink or we sail through. And we thank the Almighty that we have arrived at the destination."
Dangote had disclosed to investors in Saudi Arabia during a trip to the country with President Bola Tinubu that the refinery wants to begin production with crude supply from the Nigeria National Petroleum Company Limited (NNPC).
Refinery places order for six million barrels of crude from NNPC
There have been reports that the refinery ordered six million barrels of crude oil from the NNPC, totaling 200,000 barrels daily.
Dangote told the Financial Times that he believes strongly in the facility's capacity to reach 650,000 barrels per day by the end of 2024.
Africa's richest man said the refinery has successfully resolved all the challenges concerning crude oil supply, stating that it will eventually list on the Lagos Stock Exchange.
NNPC is not pushing for a larger share in the Dangote refinery
He dismissed the notion that the NNPC was pushing for a more significant stake in the refinery.
Dangote stated that once operational, the facility will generate an annual revenue of $25 billion, noting that NPPC is content with the 20% stake in the refinery.
The International Energy Agency said in its Outlook for October 2023 that the Dangote refinery is expected to play an essential role in driving oil demand growth, especially for countries in Africa that rely on petrol imports.
Dangote Refinery to sell petrol to Nigeria in Dollars, not naira, Executive Director gives reasons
Legit.ng reported that Dangote Refinery is gearing up to commence production after several delays since it was commissioned in May 2023.
Dangote Refinery is gearing up to commence production after several delays since it was commissioned in May 2023.
In an interview with S&P Global Commodity Insights, Edwin noted that the company is ready and is waiting to receive its first crude to begin refining.
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Source: Legit.ng
