Beginning this July, the Dangote Oil Refinery and Petrochemicals company will refine petrol and ultra-low sulphur diesel and also, upscale production to at least 500,000 barrels per day.
The facility currently operates at 350,000 barrels per day capacity, the full installed capacity is 650,000 barrels per day (bpd).
Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin disclosed when he conducted S&P Global, headquartered in Manhattan, New York City, on an onsite visit to the Ibeju-Lekki facility in Lagos as part of its sovereign credit ratings assessment of Nigeria.
Davekumar’s assurance came as international financial analytics corporation, S&P Global, described the 650,000 barrels per day (bpd) Dangote Oil Refinery and Petrochemicals company as capable of resolving Nigeria’s foreign exchange (forex) issue and its huge pressure on the local Naira currency.
The facility, which can also catalyse the country’s economic development, according to the analytic company, would bolster Nigeria’s oil sector and, more importantly, impact positively on the growing economy.
Davekumar noted that products from the $20 billion facility are of high quality and meet international standards, stating it can meet 100 per cent of Nigeria’s demand for petrol, diesel, kerosene, and aviation Jet, with surpluses available for export.
He explained that the refinery is designed to process a wide range of crudes including various African and Middle Eastern crudes, and the US Light Oil, as it conforms to Euro V specifications. In addition, it is designed to comply with the US EPA, European Union (EU) emission norms, the Department of Petroleum Resources (DPR) emission/effluent norms, and the African Refiners and Distribution Association (ARDA) standards.
While noting that most refineries were built by foreign companies, he said that a Nigerian company designed and built the world’s largest single-train refinery complex while acting directly as its Engineering, Procurement, and Construction (EPC) contractor. The refinery also incorporates a self-sufficient marine facility capable of handling the world’s largest vessels.
“The refinery can produce the best quality products in the world, Euro V grade. It is one of the energy-efficient refineries and it is highly environmentally friendly. It is sophisticated with a high level of automation. The largest single train refinery in the world is 100 per cent designed, engineered, and constructed by a Nigerian company as an EPC contractor,” he said.
Meanwhile, the Director and Lead Analyst, of Sovereign and International Public Finance Ratings, S&P Global Ratings, Ravi Bhatia, who led the delegation to Lagos, said the largest single-train refinery complex in the world would transform Nigeria into a net exporter of petroleum products. He added that this transformation is expected to boost revenue generation and alleviate the current pressure on the country’s foreign exchange reserves.
“It is impressive, able to process 650,000 barrels daily, when in full capacity. It is the largest single-train refinery complex in the world. Nigeria is a big exporter of crude but has issues with importing refined fuels. So, there is a gap in the market where crude can be refined in Nigeria, save money that way, and potentially save some foreign exchange. This will be positive for the economy in the medium term. It looks positive from our assessment,” Bhatia said after an over four-hour tour of the facility.
The S&P team commended the President of Dangote Industries Limited, Aliko Dangote, for integrating advanced technologies and quality control measures, including a state-of-the-art Central Control Unit ensuring smooth automation of operations.
Other members of the team of the international rating agency include the Associate Director of Sovereign Ratings, Maxmillian McGraw; Director of Corporate Ratings, Omegu Collocott; Senior Analyst of Bank Ratings, Charlotte Masvongo, and Director of Financial Services, Samira Mensah.
Nigeria, one of the world’s leading oil-producing countries, exports all its crude oil for refining and subsequently imports refined products due to a lack of operational refineries. It is estimated that Nigeria imports at least 50 million litres of petrol daily for domestic use.
Data from the National Bureau of Statistics (NBS) in its Foreign Trade Statistics for the Fourth Quarter of 2023 showed Nigeria spent approximately N12 trillion on the importation of petroleum products in 2023, including premium motor spirit (PMS), commonly known as petrol. This figure marks an 18.68 per cent increase compared to the N10 trillion spent on fuel imports in 2022.
Comments are closed.