Refinery investment: Lokpobiri reconciles Dangote, NNPC Ltd., others

SEN. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), has convened a high-level meeting with key stakeholders in the oil and gas sector to resolve issues surrounding the Dangote Refinery.

This is contained in a statement by Nneamaka Okafor, Special Adviser to the minister on Media and Communications.

The Meeting which held on Monday in Abuja had in attendance Alhaji Aliko Dangote, Chairman/ CEO, Dangote Group and Mr Farouk Ahmed, Authority Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Others are Mr Gbenga Komolafe, Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Malam Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd.).

It will be recalled that recent face-off in the industry saw the leadership of the Dangote Group, NMDPRA and NNPC Ltd. in a disagreement over some pertinent issues.

Dangote had declared that the NNPC Ltd. no longer own a 20 per cent stake in its refinery, stressing that the Nigerian oil company now owns only 7.2 per cent of the refinery due to its failure to pay the balance of their shares, which was due in June.

The NNPC Ltd. however, said the decision to cap its equity participation at the paid-up sum was made and communicated to Dangote Refinery several months ago.

The NMDPRA was also at loggerheads with Dangote over issues bordering on licenses, which the Authority said the Dangote refinery was at its pre-commissioning stage while its diesel below international standard.

Dangote, however, refuted the NMDPRA stand on the issue.

Dangote also accused the International Oil Companies (IOCs) of frustrating its refinery operations by selling crude oil to it through their foreign trading arms offering cargoes at two to four dollars per barrel, above NUPRC official price.

On this background, the minister convened the meeting to find a lasting solution to the current impasse affecting the Dangote Refinery, with all parties demonstrating commitment to collaborative and proactive problem-solving.

Lokpobiri emphasised the importance of cooperation and synergy among all stakeholders.

This, he said would ensure the success and optimal performance of the oil and gas sector, which he described as pivotal for Nigeria’s economic growth and energy security.

The stakeholders expressed their gratitude to the minister for his exemplary leadership and timely intervention in facilitating the dialogue.

The meeting marked a significant step towards resolving the challenges and underscores the minister’s dedication to foster a conducive environment for Nigeria’s oil and gas sector.

The coming on stream of the $20 billion Dangote Refinery with a refining capacity of 650,000 barrels per day (bpd) in 2023, gave impetus to the country’s oil sector as it would ensure that Nigeria was not reliant on fuel from overseas.