Dangote Group President Aliko Dangote capitalised on the success of his 650,000 barrels-per-day refinery and petrochemical plant to advance discussions with Angolan President João Lourenço on constructing a new refinery in Southern Africa.
Located at the Lekki Free Trade Zone in Lagos State, the Dangote Refinery and Petrochemical Plant, the world’s largest single-train refinery, has become a game changer in Africa since it started operations.
With the increasing reliance on the refinery by the Nigerian National Petroleum Company Limited (NNPCL) and oil traders from Nigeria and other West African countries, the facility is gradually bringing to an end decades-long fuel imports from Europe to Africa estimated at about $17 billion a year.
With the heightened competition from the Dangote refinery, European refineries that are already at risk of closure due to dwindling refining margins are facing increasing pressure as a result of the loss of the West African markets.
Apparently excited by the success of the Nigerian refinery, which has positioned Nigeria as a refining hub, THISDAY gathered that Dangote last week led a strong delegation of his company’s executives and business partners to meet with the Angolan President João Lourenço in the country’s capital, Luanda, to conclude a deal on his involvement in a new refinery project.
Dangote, it was learnt, visited the Angolan leader in Luanda last Tuesday to discuss investments in cement factories and refinery projects.
While President Lourenço and Dangote also held talks on the latter’s interest in the establishment of cement factories and acquisition of offshore and onshore oil blocks, the Angolan leader also urged him to invest in agriculture.
Angola had called on interested companies and individuals to invest in its 200,000-barrel-per-day Lobito Refinery after it launched the public tendering process last August.
During the visit, the billionaire businessman also opened a subsidiary of Dangote Industries in Angola to consolidate his investment drive in multiple sectors.
It was also gathered that Dangote also held working meetings with the heads of state-owned oil company Sonangol, the country’s apex regulator of the oil and gas industry, the National Agency of Petroleum, Gas and Biofuels (ANPG), and other entities.
“During the meeting with President Lourenço, Dangote expressed interest in investments in the Lobito Corridor project, acquisition of onshore and offshore oil blocks in Angola, and investment in cement factories. President Lourenço invited Dangote to invest in oil and gas, cement, agriculture, and refining,” the source said.
The Lobito Refinery, located in Benguela province, will have a capacity to process 200,000 barrels per day of crude oil.
Angola had called on interested companies and individuals to invest in its Lobito Refinery after it launched the public tendering process last August.
The proposed corporate governance structure shows that private investors will own a 70 percent stake, with state oil firm Sonangol controlling a 30 percent stake.
Angote’s Angolan subsidiary will manage operations, including the Lobito Refinery and investments in oil blocks and cement plants.
Reports suggest that Dangote plans to secure a significant portion of the 70% stake available to private investors.
The billionaire businessman is also reportedly considering building an additional refinery.
