The Dangote Oil Refining Company (DORC) plans to divest a 12.75% stake in its refinery to new investors after the Nigerian National Petroleum Corporation (NNPC) Limited withdrew from fulfilling its obligations for a 20% acquisition of the refinery. This is according to a Fitch Rating report on Dangote Industries Limited (DIL).
The report stated that NNPC’s reduction of the acquisition of the refinery from 20% to 7.2% means the company will offer the remaining 12.75% to new investors. Fitch noted that the group tends to service its significant syndicated loan maturing in August 2024 from the equity divestment.
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Aliko Dangote, CEO of Dangote Refinery, said, “NNPC no longer owns 20% of Dangote Refinery. They now own only 7.2% due to their failure to pay the balance of their share.”
The Dangote Refinery is a massive oil project located in the Lekki Free Zone, Lagos, Nigeria, boasting a capacity of 650,000 barrels per day (BPD). Once fully operational, the refinery will produce approximately 50 million litres of petrol and 15 million litres of diesel daily, equating to 10.4 million tonnes of petroleum products annually.
