Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » NNPC chief advances Dangote refinery stake purchase, warns on fuel costs

    NNPC chief advances Dangote refinery stake purchase, warns on fuel costs

    June 29, 2021
    Share
    Facebook Twitter LinkedIn WhatsApp
    *Mele Kyari, NNPC GMD

    Lagos — Nigerian state oil company NNPC has signed term sheets with Dangote Group to buy a 20% stake in the company’s oil refinery under construction in Lagos state, NNPC’s director said on Tuesday.

    Mele Kyari said NNPC is in talks with banks to borrow on the back of its cash flow to buy the stake in the 650,000 barrel per day (bpd) refinery. He declined to put a dollar figure on the stake, but said the refinery is worth an estimated $19 billion.

    Dangote Group previous said that NNPC and three other firms had approached it regarding a stake purchase.

    Kyari said NNPC still needed cabinet approval for the plan, but said the value of having a stake in what would be the largest oil refinery in Africa was worth the cost.

    NNPC’s cash flow however is constrained by gasoline price caps that have made it the sole importer of the fuel and forced it to sell at a loss.

    Kyari said he had warned the government that NNPC its remittances to the government could drop to zero due to those costs – though they had not yet done so. Union groups in Nigeria have fought against any price increases, but Kyari said he was hopeful of a deal to shed the subsidy costs within the coming months.

    “The reality is that we can’t afford it,” he said. “But if you don’t do something smart, you could end up with prices that Nigerians can’t afford.”
    – Reuters (Reporting By Libby George; Editing by Kirsten Donovan and Louise Heavens)

    Follow us on twitter

    Related News

    Seplat Energy earns CIPS Procurement Excellence Standard Certificate 

    IEA says it stands ready to tap emergency oil stocks, OPEC sees no need

    US EPA proposes higher biofuel blending volumes through 2027

    Comments are closed.

    E-book
    Resilience Exhibition

    Latest News

    FG reiterates commitment to port automation

    June 14, 2025

    Seplat Energy earns CIPS Procurement Excellence Standard Certificate 

    June 14, 2025

    Meta signs deal for advanced geothermal power in New Mexico

    June 14, 2025

    IEA says it stands ready to tap emergency oil stocks, OPEC sees no need

    June 14, 2025

    China solar industry to address overcapacity challenge but turnaround far off, experts say

    June 14, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.