Tag: Dangote

  • After refenery’s success, Dangote to start crude production soon – Report

    After refenery’s success, Dangote to start crude production soon – Report

    Due to supply challenges, the Dangote Group, owners of the Dangote Refinery, will soon start crude oil production.

    According to reports by S&P Global Commodity Insights, the Dangote Group is looking to start production at its two Nigerian oil assets in the fourth quarter of 2024.

    The company, which has endured months of crude supply woes, would reportedly commence production at its two Niger Delta upstream projects in Oil Mining Leases 71 and 72, starting with about 20,000 barrels per day before ramping up further in the first quarter of 2025.

    “The company source said production at the company’s two Niger Delta upstream projects in Oil Mining Leases 71 and 72 would start at around 20,000 b/d, before ramping up further in the first quarter of 2025,” the report said.

    The report stated that Dangote is currently seeking a floating production, storage and offloading vessel with a capacity of 650,000 barrels of crude.

    The company, it was learnt, holds an 85 per cent stake in West African E&P Venture, which in turn has a 45 per cent working interest in the two blocks, alongside the state-owned Nigerian National Petroleum Company’s 55 per cent.

    The other stakeholder in West African E&P is Nigerian upstream player, First E&P, which operates OMLs 71 and 72.

    “The licences are located in the shallow water in the southeast of the troubled Niger Delta, just 22 km from the onshore Bonny terminal. They contain the Kalaekule and Koronama oilfields.

    “Discoveries were first made on the blocks in 1966, and Shell began production there two decades later. Output peaked at 21,000 b/d in 1999, before declining in 2003,” S&P explained.

    However, according to Commodity Insights, the fields still hold recoverable resources of almost 300 million barrels of oil and as much as 2.3 trillion cubic feet of natural gas.

    The report noted that though Dangote’s upstream activities are seldom discussed, the imminent startup of production at OMLs 71 and 72 suggests the Dangote refinery could soon supplement its crude feedstock, after battling crude supply issues for months.

    The $20 billion facility came online in January, and started up its residue catalytic cracker in early September, allowing for high-volume petrol production when the unit stabilises.

    Built by Africa’s richest man, the refinery was designed to end Nigeria’s decades-long dependence on imported refined products. To date, it has produced volumes of gasoline, diesel, gasoil, jet fuel and naphtha, for domestic use and export.

    However, the plant struggled to obtain sufficient Nigerian crude in its early months, forcing it to import large volumes of WTI Midland crude from the US, and sparking a bitter public row between the NNPC, international oil companies, Dangote and Nigeria’s upstream regulators.

    Data from S&P Global Commodities at Sea shows Dangote took just under 200,000 bpd of Nigerian crude in September and it has not imported any US crude since mid-July.

    However, Dangote may acquire crude from other oil producers, including Libya, Senegal and even Brazil, with company sources warning that NNPC could only be able to fulfil 60 per cent of its crude demand.

  • Allow Dangote to sell petrol directly to marketers, Catholic Archbishop tells FG

    Allow Dangote to sell petrol directly to marketers, Catholic Archbishop tells FG

    The Catholic Archbishop of Ibadan Archdiocese, His Grace, Most Rev. Gabriel Abegunrin has urged the government to allow Dangote Refinery to sell petrol directly to marketers.

    The Archbishop made the remark on Wednesday in Ibadan at a news briefing organised by the Archdiocese on the occasion of his 75th birthday anniversary.

    Abegunrin said that allowing Aliko Dangote to decide the price of petrol and sell directly to the marketers would make it easier and cheaper for people to buy petrol rather than through the Nigerian National Petroleum Corporation (NNPC).

    The cleric also urged governments at all levels to continue to do their best to secure lives and property of the people.

    Abegunrin urged the youth to retrace their ways, shun all forms of vices and engage in skills to be self employed.

    “It’s not totally true that there is no job; the youths can use their hands to work, they can farm and establish themselves.

    “We also urge all faithful to encourage the youths, get jobs for them and advise them properly,” he said.

    In his remarks, a priest in the diocese, Rev. Fr. Richard Omolade said the Archdiocese of Ibadan honoured Abegunrin for his selfless services to the Catholic church, Oyo State and Nigeria at large.

    He described the Archbishop as a “a great role model, hardworking, punctual, patient, humble, encouraging, truthful and lover of the youths”.

    According to him, Abegunrin always express optimism and confidence in the ability of the youths and always encourages parents to train their wards in God’s way.

    “As a matter of fact, His Grace’s tenure as the Archbishop of Ibadan has witnessed tremendous growth in all levels.

    “We must not also forget the Emeritus Archbishop of Ibadan, Most Rev. Felix Job, who is the predecessor of Archbishop Abegunrin, for his leadership in the past.

    “The two of them really worked hard to take the church to this height it has attained and assured them of our continuous prayer for God’s protection,” he said.

  • Doyin Okupe tackles Dangote on complete subsidy removal

    Doyin Okupe tackles Dangote on complete subsidy removal

    A former Presidential spokesperson, Dr Doyin Okupe, on Tuesday said he was not in agreement with Alhaji Aliko Dangote’s call for complete removal of  subsidy.

    Okupe expressed the position in an interview with NAN in Lagos.

    Recall that Dangote, owner of  the 650,000 barrels per day crude oil refinery in Lagos, had in an interview with Bloomberg urged the Federal Government to end fuel subsidy completely.

    Speaking during the 26-minute interview  in New York on Monday, Dangote said the time was right to end subsidy, which, he said,  had cost the country trillions of naira .

    Reacting , Okupe said: “With utmost respect, I disagree with Aliko Dangote on his suggestion that the government should completely end subsidy now.

    “Petrol is the economic oxygen of Nigerians, wether rich or poor. This is not the situation in other countries of the world.”

    The former Director-General, Peter Obi Presidential Campaign, said that with the coming up of local refineries, some level of succour should be given to Nigerians.

    According to him, with the allocation of 450,000 barrels a day for local consumption, Nigeria can combine the advantage of local production with local consumption and determine the price to sell to crude to local refineries.

    “We can use opportunities that these local refineries avail us, ensuring adequate fuel supply with the dedicated or allocated daily crude oil for local consumption, which is outside OPEC quota.

    “So, whatever we do with it is our internal affairs, it is a way of providing some level of comfort.

    “We can sell this daily crude oil allocation for local consumption cheap to determine average pump price of PMS (Premium Motor Spirit) in the country.

    “For instance, the price of Nigerian crude per barrel is $77, we can decide to sell to Dangote refinery at $35 or $37 per barrel, thereby having made adjustments of processing fees and profit margin, the pump price of petroleum can actually come down to N500 or N600 per litre.

    “This will definitely bring a major relief, comfort and succour to the masses,” he said.

    Okupe said that ending importation of petroleum products would reduce the tension and pressure on  foreign exchange demand by  40 per cent.

    “This will give economic oxygen to Nigerian people, encouraging enterprises and local businesses because we all in Nigeria, rich and poor, depend on petrol as an economic oxygen.

    “Every nation has a sector where it stands behind the people,” he added.

    Okupe described President Bola Tinubu administration’s bold step on fuel subsidy as excellent and commendable.

    He said that the President had done a great job by courageously removing subsidy and eliminating multiple exchange rates.

    According to him, the President’s reforms have taken root in the economic system.

    “It is something very brave that no other previous administrations have had the courage to go through it.

    “What the President did was actively like biting the bullets and he has been courageous enough to persevere and persist through it.

    “Having done it for more than a year, my feeling and belief is that we have made enough gains, and because these refineries are upstream, we can consolidate on those gains and release the pressure on the masses a little bit.

    “Fortune has played in our hands by the coming upstream of the Dangote refinery, Port Harcourt refinery and other refineries that will follow,” he said.

  • I don’t think it makes sense to buy Arsenal – Dangote

    I don’t think it makes sense to buy Arsenal – Dangote

    The President and Chief Executive of Dangote Group, Alhaji Aliko Dangote, has said he’s no longer interested in purchasing English Premier League club, Arsenal .

    He said he wished he had bought the English side club when the team was valued at around $2 billion.

    Speaking in an interview with Bloomberg’s Francine Lacqua in New York, the billionaire business mogul explained that he missed out on buying Arsenal by committing his resources to the refinery project.

    He said, “I think that time has passed. The last time when we had this interview, I told you as soon as I finish with the refinery, I am going to try and buy Arsenal.

    “But you know everything has gone up and the club too is doing very well, Arsenal is doing extremely well right now. That time Arsenal wasn’t doing well.

    “I think I don’t have that kind of excess liquidity to go and buy a club for $4 billion so to speak and use it as a promotional something.

    “But what I will do is to continually be the biggest fan of Arsenal. I watch their games anytime they are playing. So, I will remain a major supporter of Arsenal but I don’t think it makes sense today to buy Arsenal.’

    When asked if he regretted not buying when Arsenal’s value was lower, he said, “Actually, I regret not buying it before but you know my money was more needed in completing my project (Dangote refinery) than buying Arsenal. I would have bought the club for $2 billion but you know I wouldn’t have been able to finish my project. So, It was either I finish my project or go and buy Arsenal.”

    Dangote had in 2020 made known his intention to go for the North London club after his refinery project.

    The richest man in Africa, who has now rested his ambition to take over at Emirates Stadium, founded the Dangote Group — the largest conglomerate in West Africa — in 1981.

  • It is right time to take away subsidy – Dangote to FG

    It is right time to take away subsidy – Dangote to FG

    Chairman of Dangote Group, Aliko Dangote urged the Federal Government to stop the fuel subsidy, saying it is the right time to do so.

    In an interview with Bloomberg TV on Monday, the billionaire insisted that the Nigerian government can’t afford to sustain petrol subsidy.

    Recall that on May 29, 2023, President Bola Tinubu had declared an end to fuel subsidy during his inauguration speech in Abuja.

    The end of the fuel subsidy regime had led to an increment in the pump price of fuel across the country.

    However, Dangote said: “Subsidy is a very sensitive issue. Once you are subsidising something then people will bloat the price and then the government will end up paying what they are not supposed to be paying. It is the right time to get rid of subsidies.”

    “But this refinery will resolve a lot of issues out there, you know, it will show the real consumption of Nigeria, because, you know, nobody can tell you. Some people say 60 million litres of gasoline per day.

    “Some say, it’s less. But right now, if you look at it by us producing, everything can be counted. So everything can be accounted for, particularly for most of the trucks or ships that will come to load from us. We are going to put a tracker on them to be sure they are going to take the oil within Nigeria, and that, I think, can help the government save quite a lot of money. I think it is the right time, you know, to remove the subsidy.”

  • Why Nigerians experience high fuel prices — OPEC

    Why Nigerians experience high fuel prices — OPEC

    Following the fuel price hike that sparked widespread concerns, with many pointing fingers at the Dangote Refinery,. the Organisation of Petroleum Exporting Countries (OPEC) has said  taxes imposed by major oil-consuming countries are the primary driver of increased fuel costs.

    OPEC chief has debunked many Nigerians’ assumptions on the rising of oil prices directly benefiting oil producers at the expense of consumers; he declared the assumption seems to be a total misconception.

    OPEC also declared that multiple taxation is the major driver of rising fuel costs — not crude oil price

    The high cost of fuel at the pump is not merely a reflection of crude oil prices or refinery margins. Instead, a significant portion of what consumers pay is directed towards government taxes.

    “It is important to recognise that the price paid by consumers at the pump is determined by multiple factors, including crude oil prices, refining, transportation, and, notably, taxes,” Al Ghais pointed out.

     

  • Dangote Refinery can only produce 36% of petrol demand with 90,000 BPD output

    Dangote Refinery can only produce 36% of petrol demand with 90,000 BPD output

    Consulting firm Energy Aspects Ltd is forecasting about 90,000 barrels a day of petrol (PMS) production for the Dangote oil refinery in the fourth quarter of 2024.

    At full output, the refinery is expected to be able to produce about 330,000 barrels a day (bpd) of petrol (about half of its capacity), according to Randy Hurburun, senior refinery analyst at consultancy Energy Aspects Ltd.

    The 90,000 bpd output will be equivalent to about 36% of Nigeria’s 2023 demand.

    Nigeria received close to 250,000 barrels a day in petrol imports last year, according to data from analytics firm Vortexa Ltd.

    This means the Refinery will not solve the problem of fuel queues currently being experienced in the country.

    Key to the plant’s gasoline output is a unit called a reformer, which produces blendstock for petrol. That’s started operating, with gasoline production expected to begin by the end of the week, Devakumar Edwin, Dangote Industries Ltd.’s vice president for oil and gas, said.

    Key to raising output further is another unit called a residue fluid catalytic cracker.

    The refinery will blend naphtha with reformate from the reformer to make gasoline that’s suitable for the west African market.

    The President of Dangote Group, Aliko Dangote, this week presented the first sample of Premium Motor Spirit (PMS), commonly known as petrol.

    Energy Aspects forecasts the refinery could increase petrol output to almost 250,000, but only by the second half of 2025.

  • Why  Dangote refinery will disrupt Europe’s Oil & Gas industry – OPEC

    Why Dangote refinery will disrupt Europe’s Oil & Gas industry – OPEC

    The Organisation of Petroleum Exporting Countries (OPEC) has highlighted the significant impact that the $20 billion Dangote Refinery is expected to have on Europe’s oil and gas market.

    In its June 2024 Oil Market Report, OPEC listed the Dangote Refinery as one of the key suppliers of diesel and jet fuel that could disrupt Europe’s energy industry, particularly the Northwest Europe (NWE) gasoil sector. This development, OPEC said, will boost the Nigerian economy.

    The Dangote Refinery, owned by Africa’s richest man, Aliko Dan­gote, has been recognised as the world’s largest single-train refinery. It began operations in January and has already started influencing global crude flows. Experts predict that as the refinery ramps up to full capacity, it will continue to pressure NWE gasoil performance, especially with additional supplies coming from the Middle East and Mexico’s Olmeca refinery.

    The OPEC report revealed that “upside potential for higher production levels from Nigeria’s Dangote refinery, coupled with strong flows from the Middle East and new supplies from the Mexican Olmeca refinery, will likely exert pressure on NWE gasoil performance in the mid-term”.

    It stated further, “Europe is one of the world’s largest purchas­ers of refined petroleum products and relied on imports from Asia and the US after the European Union banned the use of Russian diesel in the bloc.”

    Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, revealed that the refinery has already exported its first jet fuel cargo to Europe and has exported 90% of its 3.5 billion litres of jet fuel and diesel production.

    “It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 percent of our production, have been exported,” Edwin said.

    BP has already begun transporting jet fuel from Dangote to Rotterdam, following a successful tender in May. OPEC noted that while the jet/kerosene crack spread in Rotterdam showed a slight decline in June due to supply-side dynamics, demand from the aviation sector is expected to rise, potentially increasing pressure on the European market.

    In its initial months of operation, the Dangote Refinery scaled up to 400,000 bpd, delivering a range of products including diesel, jet fuel, naphtha, and fuel oil to both domestic and international markets. The refinery is also set to begin gasoline production, Nigeria’s primary fuel type, by mid-August.

    OPEC stated that “in June, the jet/kerosene crack spread in Rotterdam against Brent showed a slight decline, influenced by sup­ply-side dynamics. Despite signs of improving air travel activities, subdued jet fuel demand from the aviation sector weighed on the product market.

    “Going forward, European jet/kerosene demand is expected to see upward pressure as con­sumption levels from the aviation sector continue to pick up in the coming months.”

    Aliko Dangote, President of Dangote Group, emphasised the refinery’s goal to process Nigerian crude and add value within Nigeria. However, he noted that the facility remains open to sourcing feedstock from other countries, including Libya, Angola, and Brazil, to enhance its operations.

     

  • Obasanjo gives reason why fuel importers will frustrate Dangote

    Obasanjo gives reason why fuel importers will frustrate Dangote

    Olusegun Obasanjo, a former Nigeria President, has disclosed that the people benefiting from fuel importation in the country, are doing all they can to frustrate Dangote Petroleum Refinery.

    Obasanjo’s statement is followed by Aliko Dangote’s claims that some ‘mafias’ were trying to frustrate the $20bn refinery.

    This came as it was gathered on Monday that the multi-billion dollar refinery and other domestic refineries have yet to buy crude oil in naira based on President Bola Tinubu’s directive to the Nigerian National Petroleum Company Limited.

    In a recent interview with Financial Times, the former president states that the Dangote refinery should encourage both Nigerians and non-Nigerians.

    “Aliko’s investment in a refinery, if it goes well, should encourage both Nigerians and non-Nigerians to invest in Nigeria.

    “If those who are selling or supplying refined products for Nigeria feel that they will lose the lucrative opportunity, they will also make every effort to get him frustrated,” Obasanjo stated.

    Recall, Dangote Group officials cried out that international oil companies were frustrating the refinery by refusing to sell crude or by selling to them at a premium up to $4 above the normal price.

  • FRSC reacts as Dangote truck crushes 5, injures 14 others

    FRSC reacts as Dangote truck crushes 5, injures 14 others

    The Corps Marshal, Federal Road Safety Corps (FRSC), Malam Shehu Mohammed has directed the immediate re-inspection and recertification of Dangote fleet  nationwide.

    Mohammed gave the order in a statement by the Acting Corps Public Relations Officer (CPRO) Mr Olusegun Ogungbemide on Thursday in Abuja.

    He said that the directives had become necessary following a fatal road traffic crash involving a Dangote truck on Wednesday on the Nyanya-Maraba highway, which claimed five lives and injured 14 others.

    He added that the crash, which occurred at 08:40pm , involved 10 vehicles, including a Dangote truck was caused by break failure and speeding.

    “From the analysis concerning the cause of the crash, the Dangote trailer which was conveying full load of cement, had a break failure.

    “The driver lost control of the wheels while on a speed that was already against the prescribed legal speed limit on that road, before crashing into the vehicles,”he said.

    The Corps Marshal also ordered the Road Transport Safety Standardisation Office (RTSSO) of the Corps to ensure maximum compliance with safety standards.

    He however, directed the immediate clearance of obstructions caused by the crash and prosecution of the truck operator.

    Three of the injured victims were rescued to Nyanya General Hospital, three to Asokoro General Hospital, and nine to the National Hospital, Abuja. The dead victims were deposited in Karu General Hospital Morgue after being confirmed dead by doctors.

    The 10 vehicles involved were an ash colour Toyota Corolla RSH-633-FB, a red Volkswagen Golf without registration number, a black Volkswagen Golf 3 AF160-KAC, another red Volkswagen Golf 3 SML-199AA.

    Others are: and a silver colour 406 Peugeot YAB-307AF, a green Volkswagen Golf ABC-846ZW, and 3 Bajaj Boxer unregistered motorcycles.

    The corps said 19 victims (15 male adults and four female adults) were involved.

    From the number, the corps said 14 male adults sustained various degrees of injuries including cuts, fracture, bruises etc.

    The corps also said 5 victims, comprising of four males and one female were killed.