Dangote Refinery Targets 500,000 Barrels Daily Production by July, Eyes Stock Market Listing by December
LAGOS, Nigeria — The Dangote Oil Refinery is gearing up to reach a production capacity of 500,000 barrels per day by July, marking a significant milestone for the $20 billion facility. The refinery, which is set to become one of the largest in the world, aims to list on the Nigerian Stock Exchange by December 2024, subject to any unforeseen changes in the current plan.
Aliko Dangote, the Chairman of the Dangote Group, shared these ambitious plans during a recent briefing. He expressed his enthusiasm about opening up the refinery to Nigerian, African, and international investors, inviting them to become part of what he described as a monumental endeavor.
“The listing, most likely, I won’t be surprised if we list on the Nigerian Stock Exchange by the end of this year. We will do that. You know it is new and I think we would like to allow Nigerians, Africans, and other investors to join in making this historic move,” Dangote stated.
In preparation for the refinery’s operations, Dangote disclosed that the company has tendered to buy some West Texas Intermediate (WTI) oil from the United States. This strategic move is aimed at securing a stable supply of raw materials for the refinery’s production needs.
“We have tendered to buy some WTI oil from the US because the size of our refinery is very big and we have to make sure that we secure the raw materials for our production. If we have 100 per cent Nigerian crude, fine, but we can’t wait because sometimes the production is up and down,” Dangote explained. “But I think it makes economic sense for us to include the WTI in the basket of crudes that we are buying. And that is the reason why we went out on a tender.”
Looking ahead, Dangote outlined the refinery’s production goals, noting that by July, the facility aims to reach over 500,000 barrels per day in refining capacity. By the end of the year, the refinery is expected to hit its full capacity of 650,000 barrels per day, a substantial contribution to both the Nigerian and global oil markets.
“The US one (crude oil) is not something that will come and take over Nigeria something. It is not very small. When we say 24 million barrels, it sounds huge, but it is not huge. It is roughly about two cargoes in a month, which is about 10 per cent of our demand at full capacity,” Dangote added, highlighting the balanced approach to sourcing crude oil.
The anticipated listing of the Dangote Oil Refinery on the Nigerian Stock Exchange is poised to be a historic move, offering investors an opportunity to partake in the growth and success of one of Africa’s largest industrial projects.
