In a strategic move to expand its market presence, the Dangote Refinery is considering a dual listing on both the Lagos and London Stock Exchanges. Devakumar Edwin, a senior executive at the refinery, confirmed this development to Reuters.
Aliko Dangote, Africa's richest man and Chairman of the Dangote Group, revealed earlier this week that the company could potentially be listed on the Nigerian Exchange by the end of the year. This follows his statement to the Financial Times about plans to publicly list the Dangote Petroleum Refinery.
According to Dangote, the company has overcome previous challenges related to crude oil supply and is now prepared for the listing. The Dangote Group already has several companies listed on the Nigerian Exchange, including Dangote Cement, Dangote Sugar Refinery, and Nascon Allied Industries.
Expanding Horizons
Edwin explained the need to list on the London Exchange, citing the limited capacity of the Nigerian Stock Exchange (NSE) to handle the scale of the petroleum refinery exclusively. “We have listed all our businesses. The NSE will not have adequate depth to handle exclusively the petroleum refinery. We would have to take it to LSE but also list in NSE,” Edwin told Reuters.
The Dangote Refinery, which is Africa’s largest, is located on a peninsula near Lagos. The $20 billion project can refine up to 650,000 barrels per day (bpd) and is set to become the largest refinery in Africa and Europe once it reaches full capacity later this year or next.
Securing Crude Supplies
Efforts to secure crude supplies for the refinery are ongoing. In May, the refinery secured its first supply deal with TotalEnergies. The agreement followed a tender for 2 million barrels of West Texas Intermediate (WTI) Midland crude per month for a year, starting in July.
Since early this year, the refinery has been producing diesel, jet fuel, and other petroleum products, with petrol production expected to begin in June. Dangote, who has interests in several listed companies, including Dangote Cement and Dangote Sugar, continues to solidify his footprint in Nigeria’s industrial sector.
NNPC's Fight Against Crude Oil Theft
In related news, the Nigerian National Petroleum Company Limited (NNPC) reported 310 cases of crude oil theft in the past week. These incidents were recorded between May 18 and May 24 across the Niger Delta region.
The NNPC disclosed various illegal activities, including the discovery of 122 illegal refineries in Bayelsa and Rivers states, and a fuel station in Akwa Ibom selling illegally refined fuels. Additionally, multiple illegal connections and vandalized wellheads were found in several locations within Rivers, Imo, and Bayelsa states.
The NNPC also reported the arrest of 20 vehicles in Delta and Imo states, 48 infractions at sea, and the seizure of 39 wooden boats carrying stolen or illegally refined products. The company continues to intensify efforts to curb crude oil theft and safeguard Nigeria’s oil infrastructure.
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