All you need to know about Dangote refinery

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queeny

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The Dangote refinery is a private oil refinery owned by Africa's richest man and Nigeria's oil magnate Aliko Dangote. Dangote oil refinery was inaugurated on May 22nd 2023 in Lagos, Nigeria. Aliko Dangote announced his plans to build a refinery in Nigeria in 2013. the financing of the project was estimated at about $9 billion at the time. The Dangote invested a sum of $3 billion and the remaining came from loans. The construction began in 2016 and was completed in 2023.

Frequently asked questions about Dangote oil refinery

1. Where is Dangote refinery located?

Nigeria Dangote refinery sits on a 2,500-hectare land located in the heart of Lekki Free Zone in Lagos, Nigeria.

2. How much is Dangote refinery worth?

Dangote refinery Lagos is worth a whopping sum of 19 billion US dollars. It is expected to provide about 135.000 permanent jobs in the region by its time of operation.

3. Is Dangote refinery the biggest in the world?

Dangote-refinery.jpg


The biggest refinery in the world is Jamnagar Refinery, a private refinery located in India Dangote oil refinery is the largest in Africa and one of the biggest in the world holding the seventh spot.

4. How to apply for Dangote refinery

Dangote refinery recruitment


Click the link below and follow the instructions to apply for jobs at Dangote group:



Dangote refinery capacity has been estimated to process about 650,000 barrels of crude oil per day. The Dangote petroleum refinery is going to be the largest single- train refinery in the world once it commences operation. The refinery will transport oil from oil fields in the Niger Delta region where crude oil is extracted. With 650,000 barrels per day. Dangote refinery will assist Nigeria's current oil processing capacity of 1.7 million barrels per day.
 

Adewale Stock

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Dangote Refinery To List On Nigerian Exchange Limited​



Africa's richest man, Aliko Dangote, has disclosed that his $20 billion worth of oil refinery 'Dangote Refinery' will soon be listed on the Nigerian Exchange Limited (NGX) to attract investors into the billion-dollar company.


This great step taken by Dangote is a significant move for Dangote Industries, Africa’s biggest conglomerate.

Dangote disclosed the refinery listing during an interview section with the Financial Times; he added that the company has gone through many challenges related to the supply of crude oil, paving the way for the refinery’s listing.

The listing on the NGX will boost investor confidence and open more growth opportunities for Dangote Industries.

“We have resolved all the issues with crude oil supply,” Dangote stated. “We are now ready to move forward with our plans to list the refinery on the Nigerian Exchange Limited.”

The Dangote Refinery is Africa’s largest single-train refinery, with 650,000 barrels per day capacity. The refinery is expected to transform Nigeria’s oil and gas sector, which will shorten Nigeria’s reliance on imported fuel and boost export revenue.

During the interview, Dangote expressed his vision for the refinery to become independent, further solidifying its position as a global oil and gas industry player.

The billionaire also confirmed that the refinery will begin operation in December 2023 and is expected to produce 350,000 barrels daily, the first half of the refinery's target.

He also confirmed that a deal had already been clinched for the first cargo of about 6 million barrels of crude for delivery in December 2023.

He said,

  • We are starting with 350,000 barrels a day. I don’t know whether other people can face our challenges and survive. Either we sink, or we sail through. And we thank Almighty that at least we have arrived at the destination.

Dangote said he firmly believed in the refinery’s capability to achieve its desired output of 650,000 barrels per day at the end of 2024.

About Dangote Refinery​

Dangote Refinery is owned by Africa’s richest man, Aliko Dangote, and the Dangote Group. The company was inaugurated on May 22, 2023, in Lekki, Nigeria. In full operation, the refinery is expected to process over 650,000 barrels of crude oil daily, making it the largest single-train refinery in the world. It’s worth over $20 billion.
 

Adewale Stock

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Dangote Refinery Construction Update​


Project TypeIntegrated refinery and petrochemical complex
LocationLekki Free Zone, Lagos, Nigeria
Processing Capacity650,000bpd
Estimated Investment$12 billion
Completion2020
Owner and DeveloperDangote Oil Refinery Company
EPC ContractorEngineers India


The Dangote Refinery is a new oil refinery currently under construction in Lekki, owned by the Dangote Group. According to speculations, the oil refinery will have the capacity to process about 650,000 barrels per day. The refinery will process varieties of light and medium crudes to produce quality and clean Euro-V fuels including gasoline and diesel, jet fuel, and polypropylene.

In September 2013, Nigerian businessman, billionaire, and founder of the Dangote Group, Aliko Dangote unveiled the plans of constructing an oil refinery. He also announced that he had secured $3.3 billion in financing to kick off the project of which was estimated to cost about $9 billion. In the plan, the Dangote Group would invest $3.3 billion of the total money while the remainder would come from commercial loans and other private investors.



It wasn’t until 2016 that production began with infrastructure preparation and excavation. By July 2017, major work began, particularly, structural construction. The Dangote Group estimated that the refinery will be completed in 2019, and commissioned by 2020. There has been a turn of events over the last couple of months which has caused a shift in the expected timing. As a matter of fact, the construction probably lasted twice as long as Dangote’s expectation and partial refining capability will not be attained until 2022, according to Reuters.



Upon completion, the Dangote Refinery will be the biggest oil refinery in Africa and the biggest single-train facility in the world. The oil refinery is also projected to provide 9,500 direct employment, and 25,000 indirect employment. The Dangote Refinery will also eliminate the importation of fuel from other regions into Nigeria.



In February, Nigerian business Tycoon and philanthropist Femi Otedola visited the Dangote refinery and disclosed that the refinery was 75% near completion. He took to his Instagram page to describe the refinery as the “8th wonder of the world.”



“Yesterday, the Dangote Refinery and Petrochemicals Limited did a test run of its Fertilizer plant which is the second-largest in the world after that of Qatar. Surely his dream of local refining is materializing as the 8th wonder of the world gradually evolves. Kudos to the entire Dangote Industries Limited team!” he wrote.





Dangote Refinery Location & Facility



The Dangote Refinery is located on a 6,180 acres (2,500 hectares) site at Lekki (Lekki Free Zone), Lagos State, Nigeria. According to reports, the refinery will process about 650,000 barrels of crude oil per day, transporting crude oil via pipelines from the Niger Delta. There will also be provision for natural gas to supply the fertilizer factory, as well as be used in electrical generation for the refinery complex.

The whole project is said to cost almost $15 billion, with $10 billion going to the refinery, $2.5 billion to the fertilizer factory, and $2.5 billion in pipeline infrastructure.
 

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NNPC To Acquire A Minority Stake In Dangote Refinery​

The Nigerian National Petroleum Corporation (NNPC) has disclosed its plans to acquire a 20% minority equity stake in Dangote Refinery.

This acquisition is to further ensure an undisrupted supply of petroleum products across the country when the transaction pulls through.

According to Mr. Mustapha Yakubu, the NNPC's Chief Operating Officer of Refining and Petrochemicals, the negotiations for this acquisition with the Dangote Refinery are all being handled by the GRPD (Greenfield Refining Projects Division), a division under the NNPC.
Mustapha Yakubu was present at a 2-day Nigeria Oil and Gas Opportunity Fair (NOGOF), 2021, which was tagged “Leveraging Opportunities and Synergies for Post Pandemic Recovery of the Nigerian Oil and Gas Industry.”

In his speech, he said: “We have what we call the Greenfield refinery and the Greenfield Refining Projects Division (GRPD) of the NNPC. What we do, our strategy is to collaborate and seek strategic partnerships with private investors.
At the moment, we have Dangote Refinery, which is a 650,000 barrels per day capacity, plus a mini 80,000 tonnes per annum petrochemical plant.
What are we doing there? I can tell you today that we are seeking to have a 20 percent minority stake in Dangote Refinery as part of our collaboration and you know that there’s a huge quantity of crude for that refinery.
That’s 650,000 barrels, going into a single crude distillation unit (CDU). When that comes on board, it will also wet the nation for us.”


Yakubu also noted that the NNPC is collaborating with other refineries like the African Refinery in Port Harcourt, a co-location facility, the CNCEC Chinese group, which is interested in building two refineries in Nigeria, the Waltersmith modular plant and Azikel refineries on condensate production.
He stated that despite the global awareness for renewable energy, Nigeria has a local, domestic and regional market for hydrocarbons. Stating that Africa will continue to depend on fossil fuels at least in the next two decades.
According to Mustapha, Nigeria will not just sit back and do nothing with its hydrocarbons just because the International Energy Agency (IEA) has predicted a net-zero emissions scenario by 2050.
He said, “Today when you are bringing products into Nigeria, they disappear to neighboring countries. There’s nowhere in countries around Nigeria that they sell fuel for less than N400 per liter. So, there’s a market.’’


Dangote Refinery, which is still under construction, is a 650,000 BPD refinery owned by the Dangote Group. Upon completion, it is expected to be the largest oil refinery in Africa, and the world's biggest single-train facility.
This refinery project, which was announced in 2013, is set to be completed in 2021. It will meet Nigeria's refined petroleum product requirement and have a surplus for export. According to Dangote Group, the refinery will create some 9,500 direct and 25,000 indirect jobs.

Refinery Details
The Dangote Refinery is designed to produce up to 50 million liters of petrol and 15 million liters of diesel a day, roughly 10.4 million tonnes of the product, 4.6 million tonnes of diesel, and 4 million tonnes of jet fuel per year, in addition to having a fertilizer plant, which will utilize the refinery by-products as raw materials.

The processing facilities will include various units including a crude distillation unit and associated facilities, a mild hydrocracking unit, a residual fluid catalytic cracking unit, a naphtha hydrotreater, and a gasoline hydrodesulfurization unit as well as alkylation units.
The refinery will also have sulfur recovery and hydrogen generation facilities and a polypropylene unit.