Federal Executive Council Approves The Sum Of $2.76 Billion For NNPC’s Stake In Dangote Refinery

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

The federal executive council (FEC) has approved the sum of $2.76 billion for the acquisition of a 20 percent minority equity stake in the Dangote Refinery.

Timipre Sylva, minister of state for petroleum resources, announced this at the end of the weekly FEC meeting in Abuja on Wednesday.

He also said the FEC also approved the sum of 1.48 billion for the rehabilitation of both Warri and Kaduna refineries.

“The Executive Council also approved the acquisition of 20% minority stakes by the NNPC in Dangote Petroleum and petrochemical refinery in the sum of $2.76 billion,” Sylva said.

He said the NNPC would soon unveil a Comprehensive Divestment Policy (CDP) that will guide the entire divestment process.

“NNPC is currently extending natural gas infrastructure backbone through the OB3 and AKK gas pipelines to deepen domestic gas utilization, support industrial growth and job creation.

According to Mr Kyari, while the NNPC partners reserve the right to divest their interests, the national oil company also has a duty to provide clear-cut guidelines and criteria for such divestment to guarantee a win-win situation for all parties.

He said: “We are seeing a wave of divestment by oil majors operating Nigeria. NNPC as a national oil company cannot stop partners from divesting their interest, even though it creates a challenge for us in ensuring that we get right and competent investors to take position and add value to the assets.

“NNPC will ensure that Nigeria’s National strategic interest is safeguarded, by developing a Comprehensive Divestment Policy”.

He added that the new energy sources have obvious wider business implications on the oil and gas industry.

He explains further: “However, looking at both climate and population change dynamics, anticipated economic growth and rising global population especially in Asia and Africa will obviously increase energy consumption beyond what renewable energy sources can meet by 2050.

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