Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, has reassured of the commencement of production of Premium Motor Spirit (PMS) also known as petrol by the Dangote Oil Refinery and Petrochemicals company in the month of July.
Edwin gave the assurance during an onsite visit to the Dangote Refinery at Ibeju-Lekki, Lagos, by S&P Global, headquartered in Manhattan, New York City in the United States, as part of its sovereign credit ratings assessment of Nigeria.
He reiterated that as earlier promised, the company will commence the production of petrol in July.
According to Edwin, the move will harness Africa’s abundant crude oil resources to produce refined products locally, adding that the company aims to catalyze a virtuous cycle of industrial development, job creation, and economic prosperity.
Edwin also noted that products from the $20 billion facility are of high quality and meet international standards, specifying that it can meet 100 percent of Nigeria’s demand for petrol, diesel, kerosene, and aviation Jet, with surpluses available for export.
On its part, International financial analytics corporation, S&P Global, described the 650,000 barrels per day refinery as capable of resolving Nigeria’s foreign exchange (forex) issue, and its huge pressure on the local Naira currency.
Director and Lead Analyst, Sovereign and International Public Finance Ratings, S&P Global Ratings, Ravi Bhatia, who led the delegation to Lagos, said the Dangote refinery would transform Nigeria into a net exporter of petroleum products.
Bhatia added that this transformation is expected to boost revenue generation and alleviate the current pressure on the country’s foreign exchange reserves.
“It is a very impressive facility, able to process 650,000 barrels a day, when in full capacity. It is the largest single-train refinery complex in the world. It came out quite quickly. Nigeria is a big exporter of crude but has issues with importing refined fuels.
“So, there is a gap in the market where crude can be refined in Nigeria, save money that way, and potentially save some foreign exchange. This will be positive for the economy in the medium term. It looks positive from our assessment,” Bhatia said after an over four-hour tour of the facility.
The S&P team commended the President of Dangote Industries Limited, Aliko Dangote, for integrating advanced technologies and quality control measures, including a state-of-the-art Central Control Unit ensuring smooth automation of operations.
Other members of the team of the international rating agency include the Associate Director, of Sovereign Ratings, Maxmillian McGraw; Director of corporate Ratings, Omegu Collocott; Senior Analyst, of Bank Ratings, Charlotte Masvongo, and Director of Financial Services, Samira Mensah.
Edwin said the refinery which is currently operating at 350,000 barrels per day capacity, is slated to scale up to at least 500,000 barrels per day capacity by July/August, commencing the refining of petrol and ultra-low sulfur diesel.
He noted that the refinery which is designed to process a wide range of crudes including various African and Middle Eastern crudes, as well as US Light Oil, conforms to Euro V specifications.
In addition, it is designed to comply with the US EPA, European Union (EU) emission norms, the Department of Petroleum Resources (DPR) emission/effluent norms, and the African Refiners and Distribution Association (ARDA) standards.
While noting that most refineries were built by foreign companies, he said it is a thing of pride that a Nigerian company designed and built the world’s largest single-train refinery complex, while acting directly as its Engineering, Procurement, and Construction (EPC) contractor.
The refinery also incorporates a self-sufficient marine facility capable of handling the world’s largest vessels.
“The refinery can produce the best quality products in the world, Euro V grade. It is one of the energy-efficient refineries and it is highly environmentally friendly.
“It is sophisticated with a high level of automation. The largest single train refinery in the world is 100 percent designed, engineered, and constructed by a Nigerian company as EPC contractor,” he said.