Business
Dangote Halts Steel Investments to Avoid Monopoly Accusations
Aliko Dangote, Chairman of the Dangote Group, has announced that his company will be halting its investments in Nigeria’s steel industry. This decision comes in response to concerns about potential monopoly practices.
Dangote revealed this shift during a recent press conference, amidst ongoing disputes with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The NMDPRA’s Chief Executive Officer, Farouk Ahmed, had previously raised concerns about Nigeria’s reliance on the Dangote Refinery for petroleum products, suggesting that it posed a monopoly risk. Ahmed also criticized the quality of petroleum products from both the Dangote Refinery and other local refineries.
In light of these issues, Dangote explained that the board of his company has chosen to withdraw from the steel sector to avoid further accusations of monopolistic behavior, similar to those currently directed at their operations in the petroleum industry. He noted that by stepping back from the steel business, the company hopes to prevent the same criticisms and encourage competition.
“Own board has decided that we shouldn’t do the steel because if we do the steel business, we will be called all sorts of names like monopoly. And then also, imports will be encouraged. So we don’t want to go into that.
“Let other Nigerians go and do it. We are not the only Nigerians here. There are some Nigerians with more cash than us. They should bring that money from Dubai and other parts of the world and invest in our fatherland,” he said
Dangote further emphasized that there are other wealthy Nigerians who could invest in the steel industry. He suggested that those with substantial resources, potentially even from abroad, should step in and invest in Nigeria’s steel sector.
Business
Dangote Refinery Resumes Import Of Oil from the US to Increase Production Capacity
Dangote Refinery has resumed its acquisition of crude oil from the United States, marking a significant shift in its strategy to boost refining capacity and overall production.
In a report by Bloomberg on Wednesday, it was revealed that a cargo of two million barrels of WTI Midland crude, sourced from Chevron Corp., is expected to be delivered to Dangote Refinery next month.
This marks the first purchase of US oil since the refinery paused foreign crude imports.
The move indicates a shift in the refinery’s supply strategy, which had previously been focused on Nigerian crude, particularly as it seeks to ramp up operations.
This new purchase raises questions about the status of the Nigerian government’s Naira-for-crude deal, which was hinted at in early October 2024.
The agreement, aimed at trading crude oil in exchange for the Nigerian naira, has faced uncertainty.
Some experts suggest that the deal might be stalling, or that the refinery might not be receiving the expected crude oil supply from the Nigerian National Petroleum Company Limited (NNPC).
Dangote Refinery’s recent decision to purchase crude from Chevron, a major US oil company, comes at a time when the refinery is actively scaling up production capabilities.
The refinery had been under intense scrutiny as it works toward becoming a key player in Nigeria’s oil industry.
While it had been procuring Nigerian oil, this new shipment of WTI Midland crude from the US underscores its reliance on diverse global suppliers to meet its production goals.
In fact, Chevron has reportedly booked the supertanker Azure Nova to transport the crude from the US Gulf, with the shipment scheduled to arrive at Dangote Refinery around December 5.
While the Nigerian government’s Naira-for-crude initiative remains in question, economist Kelvin Emmanuel recently stated that Dangote Refinery still purchases crude from the Nigerian government in dollars, suggesting that the refinery’s operations may not yet fully align with the federal government’s policy on local crude sales.
Business
NNPCL Launches Utapate Crude to Increase Nigeria’s Oil Exports
The Nigerian National Petroleum Company Limited (NNPCL) has officially launched a new crude oil grade, the Utapate crude oil blend, to enhance the country’s foreign currency earnings and increase its presence in the global energy market.
NNPCL spokesperson Olufemi Soneye made the announcement in a statement on Wednesday.
This significant development was unveiled at the Argus European Crude Conference, held in London, where the Managing Director of NNPC E & P Limited (NEPL), Nicholas Foucart, emphasized that the introduction of Utapate marks a milestone for Nigeria’s crude oil exports.
Foucart shared that production of the Utapate Field began in May 2024, and since then, the output has grown rapidly to 40,000 barrels per day (bpd) with minimal downtime.
He highlighted that five cargoes of the new blend have already been exported, mainly to Spain and the East Coast of the United States.
Additionally, two more cargoes are scheduled for shipment in November and December 2024, further boosting Nigeria’s crude oil exports.
One of the key reasons for Utapate’s success in the international market is its highly attractive qualities, according to Foucart.
The Utapate crude is sourced from Oil Mining Lease (OML) 13, which is fully operated by NEPL and its partner Natural Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO Ltd. OML 13 holds significant reserves, including 330 million barrels of crude oil, 45 million barrels of condensate, and an impressive 3.5 trillion cubic feet (tcf) of gas.
This rich reserve underpins the potential for future growth in Nigeria’s crude oil production.
Looking ahead, Foucart outlined plans to ramp up production from the current 40,000 barrels per day to 50,000 bpd by January 2025.
By June 2025, production is expected to reach between 60,000 and 65,000 bpd, with a longer-term target of 80,000 bpd by the end of 2025.
Lawal Sade, Managing Director of NNPC Trading Limited, explained that the pricing structure of the Utapate blend is similar to that of the Amenam crude.
This is because both are light sweet crudes, highly valued by refiners worldwide for their low sulphur content and efficient yield of high-quality refined products.
The API gravity and other properties of Utapate make it an attractive option for global refineries.
Business
Dangote Petroleum Refinery Begins Exportation Of Products To Neighbouring West African Countries
Dangote Petroleum Refinery begins exportation of products to neighbouring West African countries. A report was made that the Dangote refinery just shipped gasoline to the coast of Togo, West Africa. Although the shipment of the gasoline is going to the coast of Togo it can also be taken somewhere else in West Africa.
Chairman of NPA, Ghana speaks at the OTL Africa Downstream Oil Conference in Lagos states that importing from Nigeria reduces prices and freight costs for them rather than importing from Europe.
“If the refinery reaches 650,000bpd a day capacity, all that volume cannot be consumed by Nigeria alone, so instead of us importing as we do right now from Rotterdam, it will be much easier for us to import from Nigeria and I believe that will bring down our prices,”
-
Entertainment8 hours ago
Davido Reflects on Life as He Turns 32 and Donates N300M to Orphanages
-
Business5 hours ago
NNPCL Launches Utapate Crude to Increase Nigeria’s Oil Exports
-
News8 hours ago
Man Found Dead in Ogun Hotel After Returning from the U.S.
-
News7 hours ago
MDCAN Praises Tinubu for Resolving UNIZIK Crisis and Supporting Medical Professionals
-
News3 hours ago
Tron Founder Justin Sun Buys $6.2M Banana Artwork, Plans to Eat It
-
Entertainment6 hours ago
“I Really Have A Thing For Short Skirts And Dresses” – Falz Says In An Interview
-
News8 hours ago
ACF Criticizes Tinubu’s Policies, Highlights Northern Challenges
-
Sport7 hours ago
Galatasaray Plans to Sign Gift Orban to Replace Injured Icardi