Financial Energy Review
The Minister of State for Petroleum Resources, Chief Timipre Sylva, has stated that the 650, 000 per day capacity Dangote Refinery and Petrochemical Plant, which is under construction, will be a success story that is coming out of Nigeria. The minister also pledged the support of the federal government to Dangote Group to ensure the completion of the facility.
Sylvia stated this yesterday during his official visit to the refinery at the Lekki Free Trade Zone in Lagos.
The minister who was led to the refinery by the President of Dangote Industries Limited, Alhaji Aliko Dangote, and the company’s Executive Director, Strategy, Capital Projects and Portfolio Development, Mr. Devakumar Edwin, was accompanied by Senators and leaders of government establishments, including Chairman, Senate Committee on Petroleum Downstream, Senator Sabo Nakudu; Chairman, Senate Committee on Services/member, Senate Committee, Upstream, Senator Muhammad Musa; and Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari.
Others were, the Director, Department of Petroleum Resources (DPR), Mr. Ahmed Shakur; Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Wabote; and the Executive Secretary, Petroleum Equalization Fund (PEF), Mr. Ahmed Boboi; among others.He said: “This is a very heartwarming moment for all of us as Nigerians. There is no way a project of this magnitude will be going on and government will not be interested. Anywhere in the world, if a citizen of a country has committed so much money into investing in this kind of massive project, government must show interest. “I must say now that Dangote Group has turned this project to the story of all of us, we must all support this project to succeed, because the success of this project signals a lot. Of course, I am sure that the whole world is looking at the success of this project. Investors all over the world will look at the success of this project and will come to Nigeria to at least also enjoy the benefit of investing here.
“So, we are actually here to assure you, Dangote Group, that as a government, as NNPC, we will support this project as much as we can. You have definitely done very well. We will like to go from here to see the rest of the project. And then, please feel free to tell us where you think we can support. The full team is here, I am here, the GMD is here, Director of DPR is here, even NCDMB is here.
“As you can see, the whole team is complete, and whatever your concerns are, whatever your problems are, please feel free to let us know, so that we will together find a solution to problems that you might encounter. Because of course, in project of this magnitude, you cannot expect that you will not have problems.
Sylva said the Dangote Refinery and Petrochemical was a testament that the country possesses enabling environment for businesses to thrive.
He said that government will support Dangote in areas of fixed stock and offtakers in terms of gas and crude oil, adding that it’s subject to their discussion with Dangote on areas of support. ” This is one of the most impressive project have ever seen in Nigeria done by Nigerians. It is a very encouraging development. ” For us as government,we have resolved to support this projects. Sylva added that the success of the project so far would boost investors confidence in the country’s oil and gas project.
He also implored Nigerians to support the Dangote refinery project with a view to ensuring that it creates more value addition to the nation’s economy. According to him, it behold on every Nigerians to support this gagantic projects, which is the pride of our country.
‘‘For an individual to embark on such magnitude of project, it will be a wrong thing if the government and people of Nigera not to give him maximum support.
” You have demostrated patriotism in investing wisely in the sector, l urged others to follow suit to invest in Nigeria.
“We will still continue to churn out policies that will help stimulate growth in the sector,” he said. The minister said that government will ensure that the 12-billion dollars Dangote refinery is adequately support to fast track its completion. Mr Mele Kyari, NNPC GMD said that ” we are competing with Dangote but complimenting each other to boost production capacity.
” Our objective is the same, to make Nigeria a net exporter of crude. We can’t do this until we have complementary activities between the private sector and government. ” We are working seriously to ensure our Refinaries works, so that by the time Dangote comes on stream it will complement each other to make Nigeria net exporter of gasoline and other associated products. “ln the next five years, Dangote will add 650,000 barrels, government with 445,000 barrels with others companies coming up to boost capacity,” he said.
In his remarks, Alhaji Aliko Dangote, President, Dangote Group said ” We believed in Nigeria and if we don’t do it ourselves, nobody will come down to do it for us. ” There is three per cent growth population increase annually in Nigeria, so, apart from that Nigeria are supposed to meet the needs of West, East and Central Africa in terms of supply.
Similarly, Mr Devakumar Edwin,the company’s Group Executive Director,Strategy,Capital Projects and Portfolio Development, said that the asset creates market for 11billion per annum of Nigerian crude and can meet 100 per cent of the Nigerian requirement of all liquid products.
He said that Nigeria is Africa’s largest crude oil producer, but lacks refining capacity to meet its own fuel needs. “The Dangote refinery, which is designed to maximise petrol output, will produce enough to allow for a small surplus of that fuel for export.
“It will also be able to send a large volume of diesel and jet fuel to international markets. “We are confident that we can meet 100 per cent of the requirement of the country; so, the balance will go for export,” he said. He disclosed that Dangote plans to take advantage of local crude supply, adding that it won’t participate in the crude-for-fuel swap deal that is managed by the Nigerian National Petroleum Corporation (NNPC).
“We are going to buy the crude just at the export price and will sell our products at the import price, the crude swap is operating only for the importers of the product. “The new refinery has been designed to process varieties of crude from sweet to light crude sourced both locally, and abroad. ” Dangote plans to export its diesel to Europe and gasoline to Latin America, Western and Central African markets, Edwin said. He said that evacuation of refined products will be done by sea and through roads.
“We are thinking of investing in vessels. We want to make sure we are not held for ransom by any transport operators. “Africa’s largest oil refinery had revealed that it would deliver its fuels to Nigerian consumers via roads and sea ports, and will effectively replace all of Nigeria’s fuel imports once fully operational. “Congested ports and dilapidated roads led some to expect that the company would build a pipeline or other method of getting its fuel to consumers. ” Fuels would go via “shuttle” boats to Nigerian cities Warri and Calabar, and that other deliveries would go in trucks,” he added.
