Dangote is moving into oil and gas

Nigeria, Africa’s major oil producer, will have its first private crude oil refinery. The country’s most successful businessman, Aliko Dangote, is broadening his attention from cement and other products to oil and gas.

In an interview with Reuters, Dangote disclosed that the new refinery he plans to build is estimated to cost $12 billion. The plan is to be ready for operation in 2019, offering a capacity of 650,000 barrels of oil per day. The plant will include a $2 billion fertilizer unit. Though Nigeria produces large quantities of crude oil, it imports 80 percent of its fuel. Poor maintenance has resulted in a situation where its four refineries never reach full output. According to the International Energy Agency, current daily fuel consumption is 260,000 barrels.

Building the refinery will not mean a complete change of focus. Dangote group still plans to build cement plants in Cameroon, Ethiopia, Kenya, Mali, Niger, Nigeria, Senegal and Zambia by 2018. Another plant will open in The Democratic Republic of Congo by September this year.

Further reading on ca.reuters.com

< Previous Next >

Related articles

Kenya’s oil reserve may be a lot bigger than previously assumed. Canadian energy group Africa Oil discovered new reserves, adding 150 million barrels.