Dangote Petroleum Refinery is set to list a portion of its shares on the Nigerian Exchange,NGX, marking another major step in the company’s growth strategy.
Founder and Chief Executive, Aliko Dangote, said the refinery will offer between 5 and 10 percent of its stake within the next year to attract investors and strengthen market confidence.
In an interview with S&P Global on October 20, Dangote explained that the planned listing aligns with the approach earlier adopted for Dangote Cement and Dangote Sugar Refinery.
“We don’t want to keep more than 65%-70%,” Dangote stated, adding that the shares would be offered gradually, based on investor appetite and market depth.
The billionaire industrialist also disclosed that the group is exploring strategic partnerships with Middle Eastern companies to support the refinery’s expansion and the development of a new petrochemicals project in China.
“Our business concept is going to change. Now instead of being 100 percent Dangote-owned, we’ll have other partners,” he said.
Dangote noted that while the Nigerian National Petroleum Company,NNPC,Limited had reduced its stake to 7.2 percent, the company might consider increasing its holding again after the next growth phase of the refinery.
“I want to demonstrate what this refinery can do, then we can sit down and talk,” he added.
The refinery also announced plans to expand its capacity to 1.4 million barrels per day (bpd), surpassing the world’s largest refinery in Jamnagar, India, which produces 1.36 million bpd.
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“In July, Dangote unveiled plans to expand the refinery from its current 650,000 bpd to 700,000 bpd by the end of the year,” S&P Global reported. “Now, the target is to reach 1.4 mbpd, with no specified date.”
Beyond refining, Dangote said the company is developing linear alkylbenzene and base oils projects, while aiming to boost polypropylene production from 1 million metric tonnes to 1.5 million metric tonnes annually.
On the refinery’s residue fluid catalytic cracker maintenance, Dangote explained that most technical issues had been fixed, but a few challenges remained.
“We have resolved most, not all, but most of the problems. And I think we’re looking for a window when we shut down for another month,” he said, noting that the planned maintenance would be carefully timed to avoid disrupting year-end fuel demand.
Commenting on the dismissal of 800 workers, Dangote said the refinery’s internal restructuring process was almost complete and had helped ease tensions with labour unions.
“We don’t have any worries with the unions,” he noted.
He further revealed that oil production from the group’s upstream assets in the Niger Delta — oil mining leases 71 and 72 — would begin this month, with output projected to reach up to 40,000 barrels per day.
While expressing interest in new upstream ventures, Dangote said the group’s current focus remains on consolidating its ongoing projects.
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