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Business News

Dangote unveils roadmap on refinery project

As the commencement date for operations at the Dangote Refinery and Petrochemical Limited draws closer, the company has disclosed that cash flow from the $12 billion refinery project will go towards crude oil production. 

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Dangote Refinery

As the commencement date for operations at the Dangote Refinery and Petrochemical Limited draws closer, the company has disclosed that cash flow from the $12 billion refinery project would go towards crude oil production.

In specific terms, the funds will be channeled towards crude production in two Oil Mining Leases (i.e., OML 71 and OML 72), from which the company hopes to pump as much as 20,000 barrels of crude per day.

Reason for this Plan:The Executive Director at one of Dangote Refinery’s upstream subsidiaries — Dangote Exploration Assets,Edwin Devakumar, said the plan was made bearing in mind that “crude oil production is where majority of our cash flow from the refinery will go to. We’ll focus on that after we start the refinery.”

More Details: With a refining capacity of 650,000 barrels per day, the Dangote Refinery project which was undertaken by Africa’s richest man, Aliko Dangote, has been adjudged as one of the world’s biggest. Consequently, it needs easy and constant access to crude oil in order to ensure its optimal functionality.

About MMLs 71 and 72: The OMLs 71 and 72 are two shallow-water oil blocks which are located in the South-Eastern part of the Niger Delta. They’ve been producing crude since  1985 and have gone through a series of ownership structures. OML 71, for instance, was co-owned by the Nigerian National Petroleum Corporation (NNPC) and Shell in a joint venture.

In 2015, West African E&P (which is a subsidiary of Dangote Refinery) expended $300 million to buy out 45% of the OMLs from Total, ENI, and Shell. Since the purchase, efforts have been made by West African E&P and its partners to ascertain that the old oilfields are still viable.

One of the partners on the project is the National Petroleum Investment Management Services, NAPIMS. Recently, officials at NAPIMS confirmed that “we have established that some wells can flow and we have done minor refurbishment of the platform.”

The Dangote Refinery is expected to be a game-changer for Nigeria when it eventually commences operation in a few years. Some of its identified advantages include:

READ FURTHER: Dangote Refinery’s major competition has been identified

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Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs.He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor.Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan.If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

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Business News

Senate calls for the liberalization of cement policy to crash the price of the commodity

The Senate also tasked the FG on providing more industrial incentives to bring new players into the cement industry.

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BUA Cement

The Nigerian Senate has called for the liberalization of Nigeria’s cement policy to boost production and subsequently crash the price of the commodity in the country.

This motion was raised by Senator Lola Ashiru at today’s senate plenary, the senator also tasked the Federal Government on providing more industrial incentives to bring new players into the cement industry, in addition to the liberalization of the cement policy in Nigeria.

Ashiru explained that to reduce the price of cement and in extension, other building materials in the country, the Federal Government needs to provide an enabling operating environment that will encourage new entrants in the country.

The Senate in conclusion called on the FG to provide more industrial incentives and protections such as concessionary loans and larger tax incentives to encourage new entrants and expand the national cement production infrastructure, as this boost in production will lead to a downward review of cement price in Nigeria.

What industry leaders are saying

Earlier this year the founder of BUA Group, Abdulsamad Rabiu, called for the liberalization of Nigeria’s cement policy to boost production and reduce the price of the commodity.

The billionaire philanthropist faulted the belief that Nigeria is self-sufficient in terms of cement production, noting that recent statistics and figures on Nigeria’s population and cement production do not support this status of sufficiency in cement production as stated by some individuals.

He attributed the high price of cement products in the country to the supply gap which exists in the country, as the few producers who currently operate in the country are unable able to meet the country’s huge and growing demand.

The Group Executive Director, Strategy, Portfolio Development and Capital Projects, Devakumar Edwin, explained that the demand and consumption of cement in the nation currently outstrips supply, and this can be pegged on the growth in the country’s population, and the strong appetite for real estate investment and construction in the country.

He revealed that a supply gap of about 40% exists in the country’s cement market and that all players in the industry are working hard to level production with the rising demand in the country.

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Paypal’s Venmo now permits cryptocurrency trading

Venmo will support four different cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.

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Venmo, a mobile payment service owned by PayPal has announced that it has started allowing users to buy, hold and sell cryptocurrencies on its app. Just like PayPal, Venmo will support four different cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, and users can carry out transactions with as little as $1 on the app

Founded in 2009, Venmo has over 70 million users and it is one of the most popular payment channels in the US. The payment platform processed around $159 billion in payments last year.

Since the app functions like a social network, adding cryptocurrency will offer a more user-friendly feel for people who love buying and selling crypto.

READ: 28 million merchants to be granted crypto usage on PayPal

As bigger companies show more interest in cryptocurrency, there will be wider adoption of virtual currencies in future. Venmo is the latest payment app that is offering support for cryptocurrency on its platform.

Paypal, the parent company of Venmo is one of the most active companies in the crypto space as it allows users to buy, sell and hold cryptocurrencies in their digital wallets. Paypal users can also spend their coins at millions of merchants globally.

Crypto on Venmo is enabled through PayPal’s partnership with Paxos Trust Company, a regulated provider of cryptocurrency products and services.

What they are saying

Darrell Esch, Venmo’s Senior Vice President and general manager said “Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some of the common questions and misconceptions that consumers may have.”

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