Business
Construction of Dangote refinery at 71% completion
Dangote refinery will create jobs and reduce foreign exchange outflows.
Construction of the US$12 billion Dangote refinery, which has the capacity to refine 650,000 barrels per day (bpd), has reached the 71 percent completion stage according to a report – List of Valid Refinery Licences – from Nigeria’s Department of Petroleum Resources (DPR).
The report also noted that the refining capacity of Nigeria has increased from 445,000 bpd to 462,000 bpd, as private investors complete the construction of 3 new refineries, indicating an increase of 3.8 percent.
The listed refineries include the Waltersmith Refining and Petrochemical Company Limited; OPAC Refineries Limited and Niger Delta Petroleum Resources (Train2), which have 5,000 bpd, 7,000 bpd and 5,000 bpd capacities, respectively.
The refining capacity of the nation’s refineries, located in Port Harcourt, Rivers State; Warri, Delta State, and Kaduna, State, had stagnated at 445,000 bpd for several years – a rate inadequate to meet domestic demand.
According to Aliko Dangote – founder and President of the Dangote Group – the refinery when operational, will create jobs and also reduce the outflow of foreign exchange, normally spent in the procurement of refined petrochemical products and fertilizers.
Meanwhile, reacting to the potential increase in refining capacity in the country, the Executive Secretary of Nigeria Content Development Monitoring Board (NCDMB), Simbi Wabote, said: “we are excited to be part of this laudable initiative which tallies with our vision in NCDMB to serve as a catalyst for the industrialization of the Nigerian oil and gas industry. We believe that at least 10 percent of Nigeria’s oil production should be refined using modular refineries, especially via the marginal and other indigenous oil producers.”
“The journey to shift from a crude oil business model into a refining business model has begun in earnest. From where we sit, we are seeing some traction towards this goal and we are ready to partner with credible project promoters in achieving this target.”
