BY Bunmi Aduloju
Devakumar Edwin, vice-president of oil and gas at Dangote Industries Limited (DIL), says the Dangote refinery is on track to commence petrol production this month.
Edwin spoke on Saturday when officials of S&P Global visited the facility as part of its sovereign credit ratings assessment of Nigeria.
S&P Global, a financial services firm headquartered in Manhattan, New York City, was accompanied by officials from Nigeria’s ministry of finance.
In June, Aliko Dangote, Africa’s richest person, said due to a minor delay, the refinery would commence petrol supply in July — instead of the earlier scheduled June.
Noting that products from the $20 billion facility are of high quality and meet international standards, Edwin said the refinery can meet 100 percent of Nigeria’s demand for petrol, diesel, kerosene, and aviation net, with surpluses available for export.
He said the plant presently operates at a capacity of 350,000 barrels per day (bpd), but there are plans to scale up to at least 500,000 bpd by July/August — commencing the refining of petrol and ultra-low sulphur diesel.
Edwin said the company hopes to spark a positive cycle of industrial development, job creation, and economic prosperity by using Africa’s abundant crude oil resources to make refined products domestically.
The refinery, he said, incorporates a self-sufficient marine facility capable of handling the world’s largest vessels.
‘DANGOTE REFINERY CAPABLE OF SOLVING NIGERIA’S FX PROBLEMS’
On its part, S&P Global said the 650,000 bpd refinery is capable of resolving Nigeria’s foreign exchange (FX) issue and its huge pressure on the local naira currency, while also propelling the country’s economic development.
S&P said the refinery would boost Nigeria’s oil sector and more importantly, have a positive impact on its growing economy.
Ravi Bhatia, director and lead analyst of sovereign and international public finance ratings at S&P Global Ratings, said Dangote refinery would transform Nigeria into a net exporter of petroleum products.
“It is a very impressive facility, able to process 650,000 barrels a day, when in full capacity. It is the largest single-train refinery complex in the world. It came out quite quickly,” Bhatia said.
“Nigeria is a big exporter of crude but has issues with importing refined fuels.
“So, there is a gap in the market where crude can be refined in Nigeria, save money that way, and potentially save some foreign exchange.”
Bhatia said this would be positive for the economy in the medium term, stressing that it looks positive from the organisation’s assessment.
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