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Dangote’s 650,000 bpd Refinery Almost Ready, to Become Functional Soon

Dangote’s refinery which has a capacity to produce 650,000 barrels per day is now 97 percent complete, stating that it will become functional soon.

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Dangote refinery

The Nigerian Midstream And Downstream Petroleum Regulatory Authority (NMDPRA) has recently disclosed that Dangote’s refinery which has a capacity to produce 650,000 barrels per day is now 97 percent complete, stating that it will become functional soon.

Chief Executive Officer of NMDPRA Mr. Farouk Ahmed disclosed this when he was visited by the representatives of the refinery in his Abuja office to present the work plan of the facility for 2022/2023.

The NMDPRA boss in a statement said, “Today, representatives of the Dangote Refinery and Petrochemicals presented their 2022/2023 work plan to the Authority which showed that the refinery project is estimated to be at 97 percent completion.

“Dangote Oil Refinery is a 650,000 barrels per day integrated refinery project under construction in the Lekki Free Trade Zone, Lagos. It is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility,”

The Chairman of the Dangote Group Alhaji Aliko Dangote had earlier disclosed that the Refinery would be ready for commissioning before the end of the tenure of President Muhammadu Buhari.

The integrated refinery and petrochemical complex in the Lekki Free Zone near Lagos, Nigeria, is expected to be the world’s biggest single-train facility which covers a land area of approximately 2,635 hectares.

The Pipeline Infrastructure at the refinery is reputed to be the largest anywhere in the world, with 1,100 kilometers to handle 3 billion Standard Cubic feet of gas per day.

Estimated to cost about $20 billion, the refinery will produce Euro-V quality gasoline and diesel, as well as jet fuel and polypropylene, and will likely generate 4,000 direct and 145,000 indirect jobs.

Upon completion, the refinery has been predicted to double Nigeria’s refining capacity which will help the country to meet the increased demand for fuel while providing cost and foreign exchange savings with the estimation of an annual refining capacity of 10.4 million tonnes of petrol.

It would also provide jobs for Nigerians, which will curb the country’s unemployment rate, and also generate more tax money which would be used by the government to develop the country further.

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Merger and Acquisition

Otedola Moves to Sell Part of Geregu Power Plc to FEDA

Afreximbank to acquire part of Geregu Power plant

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Geregu Power

Billionaire Femi Otedola-owned energy company, Geregu Power Plc is in talks with the Fund for Export Development in Africa (FEDA) for the acquisition of part of the energy company.

The company stated in a statement signed by Akinleye Olagbende, Company Secretary and made available on the Nigerian Exchange Limited (NGX).

Geregu Power hereby notifies “Nigerian Exchange Limited (the Exchange) and the investing public of its discussions with the Fund for Export Development in Africa (FEDA) for the acquisition of a portion of Geregu Power Plc shares. FEDA is the impact development arm of the Africa Export and Import Bank (Afreximbank),” the company stated.

According to the energy firm, talks are presently ongoing and “where these talks progress to a more advanced stage, the company will notify the Exchange and the investing public in line with the rules of the Exchange.”

In October, Geregu Power listed 2.5 billion shares at N100 a unit on the Main Board of the NGX. This puts the company’s market value at N250 billion and also in a better position it to raise capital to bid for Geregu II as it is presently doing.

Speaking on the listing, the Chairman, Board of Directors, Mr. Femi Otedola, CON, said “the listing of the company was the actualization of a vision to bring world-class standards in governance sustainability, and business processes to the Company and the Nigerian electricity sector.”

He added that “listing on the Main Board of the Exchange will ensure that the long-term growth of the company is assured and its benefits will be passed on to our esteemed shareholders”.

Otedola is the largest shareholder in FirstBank and also holds a 99% stake in Amperion Power, the owner of the Geregu Power Plant.

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Merger and Acquisition

Access Bank Acquires Indirect Stake in Sigma Pensions

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Access bank

Access Holdings on Friday announced it has completed the acquisition of an indirect equity stake in Sigma and the merger of its subsidiary, First Guarantee Pension Limited (FGPL) with Sigma.

According to the bank, following the sanction of the Scheme of Merger between Sigma and FGPL by the Federal High Court on December 1, 2022, FGPL has been dissolved without winding up leaving Sigma as the surviving entity, according to Access Holdings.

Commenting on the transaction, Dr Herbert Wigwe, Group Chief Executive of the Corporation, said “Following the successful completion of the merger, our plan is to leverage the synergies of these entities, as well as the Corporation’s expansive distribution network, strong risk management culture and best-in-class governance standards to create a formidable pension funds administration business.”

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Dangote Group Dismisses Rumours of Plan to Rise Cement Price

Dangote Cement says no price increase

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Africa’s leading cement producer, Dangote Cement Plc has dismissed the rumor that it plans to increase the price of its products.

The clarification became necessary following a recent publication that Dangote Cement plans a fresh increase.

Recently, there has been some publication (Not Investors King) about a potential increase in the price of cement. The publications noted that the increase will be a result of the high cost of fuel among other prevailing issues. 

According to the Senior Manager, branding and communication, Dangote Industries Limited, Mr Sunday Esan, “Dangote Cement is not embarking on a price increase”, stating that the increase is mere speculation.

Meanwhile, Dangote Cement in the third quarter of 2022, recorded an increase in the overall volume of cement sales by 6.2 percent to 20.8 metric tons in the third quarter of 2022.

According to the company’s Chief Executive Officer, Michel Puchercos, this was achieved, despite the elevated inflation caused by a very volatile global environment.

Similarly, while speaking on the increase in the price of fuel, Puchercos said “to mitigate the impact of the significant increase in energy and AGO costs, we are strengthening our efforts to ramp up the usage of alternative fuels”.

“We are on track to commission our Alternative Fuel feed system at Obajana lines I and V, and Ibese line II in November. In addition, we are ramping up our investment in Compressed Natural Gas (CNG), to reduce our AGO usage,” he added. 

Investors King understands that Dangote Cement is Africa’s leading cement producer with nearly 51.6Mta capacity across Africa. Although it has a few competitors which include BUA Cement, the company supplies most parts of Nigeria.

In addition, Dangote Cement has operations in 10 African countries. 

Its production plant in Obajana, Kogi state, is the largest in Africa with 16.25Mta of capacity across five lines while the Ibese plant in Ogun state has four cement lines with a combined installed capacity of 12Mta.

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