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Tag: Dangote refinery

  • Dangote Refinery gets key component

    The Dangote Oil Refining Company (DORC) Limited said it just took delivery of one of the major components of its refinery equipment; the regenerator for the Residual Fluid Catalytic Cracker (RFCC).

    Fluid catalytic cracking (FCC) is one of the most important conversion processes used in petroleum refineries. It is widely used to convert the high-boiling, high-molecular weight hydrocarbon fractions of crude oils into more valuable gasoline, olefinic gases, and other products.

    The Nation also learnt the company has commenced installation of equipment for the 650,000 barrels per day crude oil refinery being built in the Lekki area of Lagos State.

    The refinery has continued to receive heavy equipment through the Dangote jetty located close to the refinery in the Lekki Free Trade Zone.

    The jetty, constructed by Dangote Oil Refinery, received its first ship of 132 metres long, 9,755 tonnes general cargo last year to deliver essential equipment for the ongoing construction.

    The refinery is being designed to accommodate multiple grades of domestic and foreign crudes, which will be processed into high-quality gasoline, diesel, kerosene, and aviation fuels that meet Euro V emissions specifications as well as polypropylene.

    The refinery also has a crude distillation unit, single-train residual fluid catalytic cracking unit, diesel hydro-treating unit, continuous catalyst regeneration unit, alkylation unit, and a polypropylene unit and will also be able to adjust its production of different products to match market demands.

    The Head of Quality Assurance/Quality Compliance and Construction, DORC, Mr. Rama Putta, said the sand filling of the site has been completed, adding that 60 per cent of the land was swampy.

    “The refinery equipment comes in semi-finished shape and we will finish them off here at the site. The remaining components are being manufactured in various countries including China, India, America, South Korea, Singapore and Malaysia,” he added.

    The Executive Director, Dangote Group, Mr. Devakumar Edwin, said the refinery would stimulate economic development in Nigeria. He said the refinery was designed to process a variety of light and medium crude grades and produce extremely clean fuels that meet Euro V specification.

    The Dangote boss said: “Usually, the sulphur in petroleum fuels results in vehicle exhaust emissions that have negative impact on health and environment, adding that the Dangote plant has invested in most advanced technology to produce Euro V fuel to help Nigeria meet the European Standard of gasoline.”

    He said the project would provide thousands of direct and indirect jobs and will add value to the Nigeria’s economic development, noting that the refinery will lead to significant skills transfer and technology acquisition opportunities in the country.

     

  • $9b Dangote Refinery: CBN reiterates support for indigenous firms

    INDIGENOUS companies will get the support of the  Central Bank of Nigeria (CBN) to import equipment, the apex bank has said.

    The bank reiterated its readiness to facilitate access to foreign exchange by manufacturers.

    CBN Governor Godwin Emefiele made the pledge yesterday during an inspection of facilities at the $9 billion Dangote Refinery within the Lekki Free Trade Zone in Lagos.

    The refinery, when it starts full operation, has capacity to refine 650, 000 barrels of crude oil per day (bpd).

    The project is expected to produce 883 KPTA polypropylene plant, three million tons per annum urea plant and 1,100 kilometres sub-sea pipeline infrastructure.

    According to Emefiele, the refinery will reverse the local economy from net-importer of refined petroleum products to net-exporter products.

    The governor said that the support to indigenous companies by the CBN was to ease the importation of equipment needed to aid local production.

    He said: “I am extremely delighted on the huge investment and massive progress recorded here in Dangote Petrochemical and Fertilizer Refinery.

    “This shows commitment and readiness for business. I have said it before that we will also support Nigerian companies that take interest in construction and manufacturing of goods in Nigeria.

    “CBN will provide funding in terms of foreign exchange and naira to import equipment that will fast-track business activities.

    “Dangote Group‘s $9 billion investment is a reality of an indigenous company’s commitment that is interested in the socio-economic growth of Nigeria.

    “This has made us to support Dangote Group with N75 billion in Forex to import equipment and other facilities to ease completion of the refinery.

    “This is the kind of investment we need that will empower Nigerians and boost our revenue. I am happy that this project by Dangote Group came up in my life time. The Federal Government will continue to support the project and any other projects in the country.

    “The ongoing nine-billion-dollar-refinery investment will enjoy our support, no doubt. We are doing this to fast-track other importation of equipment you will need for a speedy completion of that project and to encourage other Nigerians to follow your lead,” Emefiele said.

    According to him, the tour was to show CBN’s support to “this laudable project that will transform Nigeria’s downstream oil sector”.

    Emefiele said that the apex bank will continue to support tremendous and impactful projects that would improve the socio-economic profile of the country through such investments.

    He said the diversification of the Dangote Group was worthy of emulation by other industrialists.

    “By the time this refinery is completed, it will not only service the needs of our domestic economy but shore up our international oil investments. Projects like this and our support will encourage more Nigerians to begin to think like the Dangote Group.” he added

    Emefiele commended the project’s promoter, Alhaji Aliko Dangote, for his resilience and dedication to create wealth.

    He said: “It may interest you to know that we always expend one third of our total foreign exchange obligation to import petroleum products.

    “When the fertilizer plant will commence operation between April and May this year and the Refinery commences operation in April 2020, we will have a lot of savings from foreign exchange. In near future, we may be buying foreign exchange from the Dangote Group.”

    Urging other private licensees to develop capacity to build more refineries, Emefiele said: “I have not seen any licensee approach the bank for credit to build refinery.

    “Remember, such licensee will approach his bank which will in turn assess his capacity to build such refinery and such request will be forwarded to the CBN for approval.

    “If they have the capacity, we will support them through their banks,” Emefiele said.

    Responding, Dangote commended the CBN for its support and for believing in the project, assuring that as the largest single train refinery in the world, Dangote Refinery, will commence operations in April next year.

    Dangote said that the construction of the refinery that will be producing 650,000 barrels of crude oil per day by the Dangote Group was expected to help Nigeria save over $7.5 billion through import substitution.

    He said that it would also put the country on the global map as a major oil and gas hub in Africa.

    The industrialist said that the Dangote Refinery, therefore, will help the government create a robust domestic refining sector.

    According to him, the plant will reduce the importation of petroleum products and save the country from capital flight.

    He said: “The refinery is going to save a huge amount of foreign exchange out- flow because, today, forex is being used in the importation of petroleum products and our foreign reserves are being heavily depleted.

    “And whatever little forex we are earning from the sale of crude oil, is being used to import petroleum products. Our petroleum refinery is going to have a major beneficial impact on the economy in terms of foreign exchange savings.

    “We will be adding value to our economy as all these projects are currently creating about 26,000 employment opportunities.”

    He said that when completed, it would create about 80,000 employment opportunities.

    Dangote said: “We will also save over $7.5 billion for Nigeria annually through import substitution. We will generate an additional $5.5 billion per annum through exports of the refined petroleum products, fertiliser and petro-chemicals.”

  • Dangote Refinery gets key component

    The Dangote Oil Refining Company (DORC) Limited said it just took delivery of one of the major components of its refinery equipment; the regenerator for the Residual Fluid Catalytic Cracker (RFCC).

    Fluid catalytic cracking (FCC) is one of the most important conversion processes used in petroleum refineries. It is widely used to convert the high-boiling, high-molecular weight hydrocarbon fractions of crude oils into more valuable gasoline, olefinic gases, and other products.

    The Nation also learnt the company has commenced installation of equipment for the 650,000 barrels per day crude oil refinery being built in the Lekki area of Lagos State.

    The refinery has continued to receive heavy equipment through the Dangote jetty located close to the refinery in the Lekki Free Trade Zone.

    The jetty, constructed by Dangote Oil Refinery, received its first ship of 132 metres long, 9,755 tonnes general cargo last year to deliver essential equipment for the ongoing construction.

    The refinery is being designed to accommodate multiple grades of domestic and foreign crudes, which will be processed into high-quality gasoline, diesel, kerosene, and aviation fuels that meet Euro V emissions specifications as well as polypropylene.

    The refinery also has a crude distillation unit, single-train residual fluid catalytic cracking unit, diesel hydro-treating unit, continuous catalyst regeneration unit, alkylation unit, and a polypropylene unit and will also be able to adjust its production of different products to match market demands.

    The Head of Quality Assurance/Quality Compliance and Construction, DORC, Mr. Rama Putta, said the sand filling of the site has been completed, adding that 60 per cent of the land was swampy.

    “The refinery equipment comes in semi-finished shape and we will finish them off here at the site. The remaining components are being manufactured in various countries including China, India, America, South Korea, Singapore and Malaysia,” he added.

    The Executive Director, Dangote Group, Mr. Devakumar Edwin, said the refinery would stimulate economic development in Nigeria. He said the refinery was designed to process a variety of light and medium crude grades and produce extremely clean fuels that meet Euro V specification.

    The Dangote boss said: “Usually, the sulphur in petroleum fuels results in vehicle exhaust emissions that have negative impact on health and environment, adding that the Dangote plant has invested in most advanced technology to produce Euro V fuel to help Nigeria meet the European Standard of gasoline.”

    He said the project would provide thousands of direct and indirect jobs and will add value to the Nigeria’s economic development, noting that the refinery will lead to significant skills transfer and technology acquisition opportunities in the country.

  • Host communities commend Dangote refinery’s initiatives

    Traditional rulers and community leaders from host communities in the Ibeju-Lekki Free Trade Zone in Lagos, have commended Dangote Oil Refinery Company (DORC) for providing communal infrastructure for their communities

    The monarchs issued the commendation at a stakeholder parley in Lagos, with the management of DORC.

    The latter, however, commended Dangote Industries Limited, its parent company, for partnering them on various Corporate Social Responsibility (CSR) initiatives for the development of its host communities in the Lekki Free Trade Zone.

    Speaking at the event, the Imobido Community head, Chief Jegede Lateef, commended the company for citing its refinery and petrochemical plants in the community.

    “We appreciate Dangote Industries for its decision to establish a refinery and petrochemical plants in our communities and we believe that the company’s investment will contribute to the development of the community. Dangote is welcome to do his business in our communities and we are fully ready to cooperate with him,” he said.

    He urged the company to ensure that the various investments translate to infrastructural development and employment opportunities for members of the host communities.

    Also, the Head of Tiye Community, Chief Adewale Salami, commended DORC for the various completed and ongoing projects, promised that the community would at all times provide an enabling environment for the investment to thrive.

    He said the company has done well in enhancing the welfare of host communities and urged it not to relent in its efforts to ensure that jobs are provided for qualified graduates who are indigenes of Lekki Free Trade Zone.

    Also at the parley, which took place after a guided tour of the Dangote Refinery, Fertilizer and Jetty, were leaders of all the communities around the project site, including Idasho, Ilekuru, Okeyanta, Magbo-Segun, Okesegun, Itoke, Idotun, Alasia, Okunraiye and Lekki town.

    The Group Executive Director, Dangote Industries Limited, Devakumar Edwin, who received the group, expressed the company’s commitment to the execution of more community development projects, particularly those that would improve the host communities.

  • Content Board lauds Dangote Refinery on local content

    The Nigerian Content Development and Monitoring Board (NCDMB) has hailed the management of Dangote Petroleum Refinery and Petrochemical Free Trade Zone Enterprises (DPRP) over its adherence to the local content law in the execution of its projects.

    The Board also declared its intention to further partner with the firm on the implementation of the local content policy.

    The Director, Monitoring & Evaluation, NCDMB, Mr. Akintunde Adelana, who represented the board’s Executive Secretary,  Simbi Wabote, an engineer, disclosed this at the weekend during the DPRP Nigerian Content Sensitisation/Awareness Creation Programme, titled: “Let’s Walk the Nigerian Content Talk Together,” at Lekki Free Trade Zone, Lagos.

    According to him, “The Dangote Refinery project was expected to close a major gap in the supply of petroleum products in the country. We consider this as a very important project and we are willing to partner with the company to ensure full implementation of the local content policy.

    “We embarked on this journey with the company a long time ago and we are ready to partner with the Dangote Group. Part of what you see today is part of our efforts to ensure that the company and its contractors comply with the local content policy and they have put in a lot of efforts in this regard.”

    Speaking further, Wabote described the Local Content Act as the quantum of composite value added to, or created in the Nigerian economy by a systematic development of capacity and capabilities, through the deliberate utilization of Nigerian human, material resources and services in the Nigerian oil and gas industry.

    He said the country recorded loses prior to the enactment of the local content policy, which he noted, came from jobs executed abroad by International Oil Companies (IOCs) operating in the country.

    “The narrative then was that nothing can be done in-country. Plants and modules were fully fabricated offshore without any structure in place to achieve knowledge transfer. Before 2010, we had no active dry-dock facilities. The few we had were abandoned and left to rot away. Today, we have four active dry docking facilities in Port Harcourt, Onne, and Lagos,” he added.

    Wabote said the board’s mandate was to develop local capacity in key areas such as manufacturing and fabrication and promote indigenous ownership of assets and utilization of indigenous assets in oil and gas operations.

    He added that the board’s responsibility also include linking  the oil and gas industry  with other sectors of the economy, enhance multiplier effect of oil and gas investments in the economy and develop pool of competitive supply chain rooted in oil bearing communities.

    Reading the riot act to defaulters of the Nigerian Content Policy, Wabote said non-compliance with the law would result to the suspension of projects/contracts, penalty of five per cent of project sum, withdrawal of NCDMB’s services, and project cancellation.

    Other penalties for non-compliance, according to the Executive Secretary, are escalation to other regulators to withdraw or suspend license, withdrawal of approvals or de-classification of contractor from pre-qualification list, application of the full weight of the law in accordance with Section 68, and publication of non-compliant operators in newspapers and professional gazettes.

    The Chief Operating Officer, Department of Petroleum Resources (DPR), Mr. Giuseppe Surace, said the programme was organised to create awareness among the company’s contractors on the requirements of NCDMB, as part of moves to ensure the local content policy takes root in their day-to-day operations.

    “The programme was organised to ensure that our contractors are well informed about the Nigerian Content Act and this is expected to assist them with the execution of not just the Dangote project, but other projects in their portfolio,” he added.

  • NDCMB partners Dangote Refinery on local content implementation

    Nigerian Content Development and Monitoring Board (NCDMB) has partner Dangote Petroleum Refinery and Petrochemical Free Trade Zone Enterprises (DPRP) on the use of Local Content Act in the country, its Director, Monitoring and Evaluation, Mr Akintunde Adelana, has said.

    He said this during the DPRP Nigerian Content Sensitization/Awareness Creation Programme, titled: “Let’s Walk the Nigerian Content Talk Together,” at Lekki Free Trade Zone, Lagos.  Adelana represented NCDMB’S Executive Director, Engineer Wabote Simbi at the event.

    According to Wabote, “the Dangote Refinery project is expected to close a major gap in the supply of petroleum products in the country. We consider this as a very important project and we are willing to partner with the company to ensure full implementation of the local content policy. We embarked on this journey with the company a long time ago and we are ready to partner with the Dangote Group. Part of what you see to today is part of our efforts to ensure that the company and its contractors comply with the local content policy.”

    He described the Local Content Act as the quantum of composite value added to, or created in the Nigerian economy by a systematic development of capacity and capabilities, through the deliberate utilization of Nigerian human, material resources and services in the Nigerian oil and gas industry.

    He said the country recorded loses prior to the enactment of the local content policy, which he noted, came from jobs executed abroad by International Oil Companies (IOCs), operating in the country.

    “The narrative then was that nothing can be done in-country. Plants and modules were fully fabricated offshore without any structure in place to achieve knowledge transfer. Before 2010, we had no active dry-dock facilities. The few we had were abandoned and left to rot away. Today, we have four active dry docking facilities in Port Harcourt, Onne, and Lagos,” he added.

    He said the board’s mandate is to develop local capacity in key areas such as manufacturing and fabrication and promote indigenous ownership of assets and utilization of indigenous assets in oil and gas operations.

    Wabote added that the board’s responsibility also include linking  the oil and gas industry  with other sectors of the economy, enhance multiplier effect of oil and gas investments in economy and develop pool of competitive supply chain rooted in oil bearing communities.

    Reading riot acts to defaulters of the Nigerian Content Policy, Wabote said non-compliance with the law, will result to the suspension of projects/contracts, penalty of five per cent of project sum, withdrawal of NCDMB’s services, and project cancellation unrecoverable sunk cost.

    Others, Wabote said, are suspension of license of the operator withdrawal of approvals or de-classification of contractor from pre-qualification list, application of the full weight of the law in accordance with Section 68, and publication of non-compliant operators in newspapers and professional gazettes.

    Also, the Chief Operating Officer, DPRP, Mr. Giuseppe Surace, said the programme was organized to create awareness among the company’s contractors on the requirements of NCDMB.  ”The programme was organized to ensure that our contractors are well informed about the Nigerian Content Act and this is expected to assist them with the execution of not just the Dangote project, but other projects in their portfolio,” he added.

  • Dangote refinery raises marketers supply hope

    Marketers are banking on Dangote Petrochemical Refinery for adequate fuel supply to end perennial scarcity, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has said.

    IPMAN National Operation Controller Mike Osatuyi said marketers were relying on the refinery because of its huge capacity. Marketers, he said, hoped to get enough fuel when the company comes on stream next year.

    He said marketers were placing their hope on Dangote after deliberating on critical issues, such as fuel scarcity, and poor distribution network, impeding the downstream sub-sector operation.

    He said: ‘’Marketers across board have, at various fora, discussed the issue of fuel scarcity with a view to ending it. They have settled for Dangote PetroChemical Refinery, because they could no longer bear the disappointments they experienced from the Nigerian National Petroleum Corporation (NNPC), which remains the sole importer of fuel in the country. Even when marketers were bringing fuel into the country, they could not get enough supplies from the refiners abroad.

    ‘’With a nameplate of 650,000 barrels per day, a figure that is higher than the 450,000 barrels per day of the Warri, Port Harcourt 1 and 2  and Kaduna Refinery, Dangote Petrochemical Refinery is the largest in Africa. Besides, the company boasts of storage facility of four billion litres of fuel and would be loading 2,700 litres of fuel per day.’’

    According to him, Dangote Petrochemical Refinery would change the chemistry of crude refining and distribution of petroleum products when it begins operation, stressing that the development informed the decision of the marketers to rely on the company to record growth in the future.

    He said the refinery would be a game changer in the industry, whenever it makes it debut, adding that independent marketers, major marketers and others were waiting for the firm to start operation, with a view to  ensure fuel sufficiency.

    He said the emergence of the private refinery would bring about competition in the downstream sub-sector, check NNPC monopoly as the only importer of fuel, and further position retailers as the kings in the market.

    On IPMAN’s modular refinery, he said issues as to the setting up of a modular refinery by the independent marketers, forging alliance with the companies that refine crude abroad, among others, were sensitive and could only be discussed by the IPMAN.

  • ‘Govt hopes on Dangote Refinery to end fuel import’

    ‘Govt hopes on Dangote Refinery to end fuel import’

    The Federal Government is waiting on the completion of work on Dangote refinery to fulfil its promise to Nigerians to end fuel importation by December 2019, Minister of State Petroleum Ibe Kachikwu, said yesterday.

    He spoke during a visit to the Dangote Oil Refinery site at the Lekki Free Trade Zone in Lagos. According to him, the government was ready to play its part to assist in making sure the project is completed on schedule.

    The minister said: “It is good to say that private sector is the answer to Nigerian’s problems with a project as big as this. The challenge I will give you today is that of time, I see your time for completion is 2019 December but I am sure you will understand my greed if I tell you that the refinery component of this project should come earlier than the set date.

    “I have made very firm commitment to Nigerians that I must stop the importation of petroleum products by 2019 and I am going to keep to it. It is absolutely important that we do this early and given the feat that we have achieved in terms of speed of construction and I urge you to do all within you to achieve its completion before the due date.”

    Dangote said he had accepted the challenge and would do all possible to achieve the feat.

    “We are going to make it by the grace of God. I am sure the minister will support us to make sure that we meet his challenge.

    “What the minister is trying to do is the best so far for our country, his own version is that Nigeria should not think of exporting crude, you know the problem we have in Africa is that we only export raw materials, not finished goods, so he is saying that, look, we should all do this by adding value and I pray that even at 2.5million barrels, we should not export much, in terms of the crude.

    “We will go back and see what to do to make this happen by fast tracking our processes since the Minister has assured of government’s cooperation and support”

    Dangote explained that his group was building the world’s largest single line Refinery, Petrochemical Complex and the world’s second largest Urea Fertiliser plant. The Refinery, according to him will have the capacity to refine 650,000 barrels of crude oil per day.  The Petrochemical Plant will produce 780 KTPA Polypropylene, 500 KTPA of Polyethylene while the Fertiliser project will produce 3.0 million metric tonnes per annum (mmtpa) of Urea.

    “In addition, we are also building the largest sub-sea pipeline infrastructure in any country in the world, with a length of 1,100km, to handle 3 billion SCF of gas per day. We also plan to construct a 570 MW power plant in this complex. As a matter of fact, gas from our gas pipeline will augment the natural domestic gas supply and we estimate an additional 12,000MW of power generation can be added to the grid with the additional gas from our system.

    “We will be adding value to our economy as all these projects will be creating about 4,000 direct and 145,000 indirect jobs. We will also save over $7.5billion for Nigeria annually, through import substitution and generate an additional $5.5billion per annum through exports of the refined petroleum products, fertilizer and petro chemicals. We envisage that these projects, which would cost over $18billion, would be completed in 2019.”

  • High-technology for Africa’s largest refinery

    High-technology for Africa’s largest refinery

    Dangote Group orders compressors and turbines from MAN Diesel & Turbo for a refinery to be erected in Nigeria.

    With a double-digit million dollar order volume, Germany-based MAN Diesel & Turbo will deliver two compressor trains to Nigerian Dangote Oil Refining Company, to be employed in the company’s refinery in the capital of Lagos.

    Dangote Corporation is currently building Africa’s largest refinery in the Lekki Free Trade Zone of Lagos, investing a total of around 12 billion US dollar. “This one we are building will satisfy 100% of the fuel needs of Nigeria,” so Alhaji Aliko Dangote, President and CEO of the Dangote Group. The new building should enable the country of Nigeria as Africa’s biggest crude oil producer to also raise its processing capacities, finally getting more independent from imported fuels.

    Wayne Jones, Member of the Executive Board and Chief Sales Officer of MAN Diesel & Turbo: “This is a milestone project and will have a huge impact on the economy of not only Nigeria but the whole of the West African region. We are very proud to be a part of this project and gladly offer our equipment and technological expertise in order to help to make the Dangote refinery not only Africa’s biggest but also one of the most efficient operations on the continent.”

    Sohail A. Khan, Managing Director of MAN Diesel & Turbo in Nigeria: “This refinery new building is underlining the long-term growth perspective Nigeria and the region of West Africa have. We are here to serve customers with highperformance technology for the oil and gas industry, process industry or the ever-rising need for efficient power generation.”

    The highly efficient machinery trains from MAN Diesel & Turbo each consist of an axial compressor driven by a steam turbine with about 30 MW power. Delivered with a comprehensive auxiliary package, they will come into operation for the refinery process of Fluid Catalytic Cracking (FCC), thereby supporting the production of fuel.

    Axial compressors will support fuel production in the Dangote refinery in Lagos (example picture MAN_axial_compressor.jpg / © MAN)
    Axial compressors will support fuel production in the Dangote refinery in Lagos (example picture
    MAN_axial_compressor.jpg / © MAN)

    MAN Diesel & Turbo convinced here with proven and reliable technology, together with its extensive expertise in the refinery sector. The order also comprises erection and commissioning of the machinery trains, being developed and build at the company’s Turbomachinery technology site in Germany. Delivery will take place in the course of 2018, while commissioning of the whole refinery is planned for the year 2019.

    Beside Nigeria as the largest national economy, MAN Diesel & Turbo holds subsidiaries also in other countries on the African continent. With 250 employees across various sales and service sites, regional workshops and a pool of field service engineers, the company serves customers that are mainly active in the oil and gas industry, the power generation business or the process industry. The company’s history in Africa dates back to the 1950s, when the first engines for power generation were delivered to the countries of Mali and Senegal.

  • Oil discovery in Lagos excites Dangote

    Oil discovery in Lagos excites Dangote

    The recent discovery of oil in Lagos in commercial quantity has been described as a good omen for the development of the oil and gas industry which Dangote refinery will benefit from.

    Speaking in his office in Lagos while receiving leaders of the League of African Development Student (LEADS), Mr. Devakumar Edwin, Group Executive Director of the Dangote Industries Limited said it was a good development that Lagos is now a proud oil producing state adding that it will further strengthen oil output from the country.

    According to Edwin, Dangote Refinery and Petrochemical would be more than willing to partner the state and the federal government in ensuring that the oil production from Lagos add value to the economy of Lagos and the nation at large.

    “We are very happy at the discovery of oil in Lagos. It is indeed a good and welcome development for us as a company. It will accelerate the growth level of the state and also be of immense benefits to the residents and the country at large. Not only will Lagos be regarded as an oil producing state and share out of the derivation fund, but Lagos will continue to be an invaluable partner to the Dangote Group with the Dangote Refinery in Ibeju-Lekki.”

    Edwin pointed out that though the crude oil prices may be unattractive at the moment, which has made major IOCs to slow down, “it did not mean that the oil and gas industry was devoid of development,” he said.

    The Dangote Group boss said, although it is just in its early phase, the Badagry oil find will be a lot more attractive for investments, when prices begin to rise at the international oil market.

    “The crash in the global crude oil price is not making it attractive to invest and make a sustainable investment. No attractive investments in deep water, but perhaps shallow waters. Oil majors are cutting down on their investments, and also retrenching, I will be surprised if people go in fast into Badagry. But, by and large, It is a welcome find, for when the prices begin to rise, we will begin to reap the benefit.”

    It would be recalled that the Dangote Group early last year ventured into oil and gas when it began the construction of the largest single industrial undertaking in the world, the Dangote Refinery and Petrochemicals.

    The project sited at the Free Trade Zone, Ibeju-Lekki, Lagos, sitting on over 2,630 hectres of land, an area 8 times larger than Victoria Island, Lagos, will have a refining capacity of 650,000 barrels of crude per day compared to a combined capacity of 445,000bpd of all currently existing government’s four refineries.

    When completed, the project is expected to meet the yearnings and aspirations of Nigerians who have been subjected to frequent acute scarcity of petroleum products and also save Nigeria over $7.5billion through import substitution.

    The entire project will cost the Dangote Group over $12billion with the refinery projected to be ready by first quarter of 2019 while the fertilizer plant will be ready early 2018.