By Adewale Sanyaolu
Barring any last minute changes, the Dangote refinery is set to begin operations in December 2023 with a slash in its initial production volume from 650,000 barrels per day (bpd) to 350,000bpd.
Chairman of Dangote Group, Aliko Dangote, confirmed the latest development to Financial Times in an interview at the weekend.
According to Dangote, the long-awaited refinery is starting with 350,000 barrels a day, confirming that a deal had already been struck for the first cargo of about 6 million barrels of crude for delivery in December 2023.
“We are starting with 350,000 barrels a day. The challenges that we faced, I don’t know whether other people can face these challenges and even survive. It is either we sink, or we sail through. And we thank Almighty that at least we have arrived at the destination.”
Nigerian National Petroleum Company Limited had earlier indicated his support as part of its equity contribution to supply six million barrels of crude oil totaling 200,000 barrels of oil per day to the Dangote refinery next month as part of a one-year supply agreement.
In the interview with Financial Times, Dangote maintained that he held a strong belief in the refinery’s capability to achieve its maximum output of 650,000 barrels per day by the end of 2024.
Emphasising that the company had successfully resolved all challenges related to crude oil supply, he disclosed plans for the Dangote refinery to eventually become an independent entity listed on the Lagos Stock Exchange.
Expanding on the refinery project, Dangote expressed that this kind of project won’t emerge in Nigeria within the next twenty years.
He also said the company did not cut corners or seek applause, but the project was done for the sake of posterity.
During the FT interview, Dangote dismissed insinuations that NNPC Limited was pushing for a larger stake in the refinery project.
He noted that once fully operational, the refinery is estimated to generate substantial annual revenue of $25 billion.
Dangote expressed confidence that NNPC is content with the shares already allocated to them in the project.