Lagos — Major Oil Marketers Association of Nigeria, MOMAN has disclosed plans to engage the management of the 650, 000 barrels per day Dangote refinery for a stake in its refined petroleum products once the facility comes on stream.
Dangote Group in a statement on Sunday, said chief executives of MOMAN recently had a virtual meeting with the President of the Dangote Group, Alhaji Aliko Dangote where their intention was presented.
Although Oyebanji was not said to have quoted a specific stake intended to be acquired by the major marketers, however, according to the statement, the marketers who presented their intention during a tour of the Ibeju-Lekki facility, expressed belief that patronising the refinery would help remove challenges associated with importation of petroleum products into the country.
The Chairman, MOMAN, Adetunji Oyebanji, was quoted as saying after the tour of the refinery complex, “It is our desire to see our members buy refined products from Dangote refinery when it comes on stream.
“We are open to discuss commercial terms with the management of Dangote Oil Refinery regarding lifting of refined products.
“The turnaround time is going to be much faster. It will be more efficient.”
MOMAN’s intention to buy petroleum products from Dangote came following recent announcement by state oil firm, NNPC, that it would acquire 20 percent stake in the yet-to-be-completed refinery.
The Nigerian National Petroleum Corporation had last Tuesday, signed the term sheet with Dangote Group, and according to the Corporation’s GMD, Mele Kyari, talks are already ongoing with banks to borrow $3.8 billion on the back of its cash flow to buy the stake.
MOMAN’s Oyebanji was also quoted to have said getting products from the refinery would also give the major marketers the possibility of getting the product by vessels or trucks.
“It is going to have a positive impact on the way we do business in the downstream sector. Hopefully, we believe Dangote refinery is going to result in delivering decent margins for our members; enough margins for us to begin to rebuild or/upgrade the assets in the industry,” he added.
He said the refinery would move Nigeria from an import-dependent nation to self-sufficiency in petroleum products.
Oyebanji expressed hope that the coming on stream of refinery would facilitate the deregulation of the downstream oil sector.
The Chief Operations Officer, Dangote Oil Refining Company, Giuseppe Surace, told the marketers that the refinery had been designed to process a variety of light and medium grades of crude, including petrol, diesel, jet fuel and polypropylene.
Worth an estimated $19 billion, Dangote Group had previously revealed that NNPC and three other firms had approached it regarding a stake purchase.