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Oil Firms To buy Dangote Industries

Nigeria’s state-oil company and four other oil firms  have approached Dangote Industries to acquire a stake in Africa’s largest oil refinery. Devakumar Edwin, group executive director, said the firms from Western and Middle East countries and involved in trading and crude production were looking to secure crude supply agreements, a similar objective to that pursued by the Nigerian National Petroleum Corporation.

Edwin said that they are seeking to have a 20% minority stake in Dangote industries refinery as part of collaboration so that they can sell their crude. He said that the refinery is not looking for equity and the company wants to be able to secure crude from the market.

Oil Firms To buy Dangote IndustriesNigeria, Africa’s biggest crude oil exporter, imports virtually all of its fuel due to moribund state refineries, which has prompted the state oil company’s interest in the 650,000 barrel per day Dangote industries refinery.Nigeria National Petroleum Corporation spokesman, said that the corporation had considered the idea of acquiring a stake in the $19.5 billion oil refinery project owned by Africa’s richest man, Aliko Dangote.

Nigerian billionaire Dangote, who built his fortune in cement, first announced a smaller refinery in 2013, to be finished in 2016. He moved the site to Lekki, in Lagos, upgraded the size and the production would start in early 2020.The company has held talks with firms including Vitol and Trafigura over the supply of crude and lifting of petroleum products for sale abroad.Nigeria lost its biggest customer, the United States, after it started producing shale oil. The U.S. is now pushing into some of Nigeria’s most valued markets.

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