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NNPC to acquire $2.7bn stake in Dangote refinery

Dangote petrol to be sold at international price - FG

The Nigerian government has given the state-owned Nigerian National Petroleum Corporation (NNPC) permission to buy a 20% share in the Dangote refinery for $2.76 billion.

In the Lekki Free Zone near Lagos, a 650,000bpd integrated refinery project is now under development.

The refinery, which is anticipated to cost $18 billion when completed, will be Africa’s largest oil refinery and the world’s largest single-train complex. By January 2022, it is expected to be operational.

Nigeria Minister of State for Petroleum Resources Timipre Sylva said that the Federal Executive Council (FEC) has also approved contracts to modernise two state-owned refineries, namely Warri and Kaduna.

Sylva said: “The FEC, today, approved the award of contract for the rehabilitation of Warri and Kaduna Refineries at the combined total sum of $1.5bn – $897.67m for Warri Refinery, and $586.9m for Kaduna Refinery.

“The FEC also approved the acquisition of 20% minority stakes by the NNPC in the Dangote Petroleum and Petro-Chemical Refineries in the sum of $2.76bn.”

The contracts for the rehabilitation of Warri and Kaduna refineries are to be awarded to Messers Saipem SPA and Saipem Contracting, the minister said.

Modernisation work on the two refineries is planned to be carried out in three phases.

 

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Ogbonna Ugorji

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