Buoyed by the global impact of his 650,000 barrels per day refinery and petrochemical plant, Africa’s richest man and President of Dangote Group, Aliko Dangote has held talks with Angolan President João Lourenço to wrap up a deal for the construction of a new refinery in the Southern African country, THISDAY has learnt.
Located at the Lekki Free Trade Zone in Lagos State, the Dangote Refinery and Petrochemical Plant, the world’s largest single-train refinery, has become a game changer in Africa since it started operations.
With the increasing reliance on the refinery by the Nigerian National Petroleum Company Limited (NNPCL) and oil traders from Nigeria and other West African countries, the facility is gradually bringing to an end decades-long fuel imports from Europe to Africa estimated at about $17 billion a year.
With the heightened competition from the Dangote refinery, European refineries that are already at risk of closure due to dwindling refining margins, are facing increasing pressure as a result of the loss of the West African markets.
Apparently excited by the success of the Nigerian refinery, which has positioned Nigeria as a refining hub, THISDAY gathered that Dangote last week led a strong delegation of his company’s executives and business partners to meet with the Angolan President João Lourenço in the country’s capital, Luanda, to conclude a deal on his involvement in a new refinery project.
Dangote, it was learnt, visited the Angolan leader in Luanda last Tuesday to discuss investments in cement factories, and refinery projects.
While President Lourenço and Dangote also held talks on the latter’s interest in the establishment of cement factories and acquisition of offshore and onshore oil blocks, the Angolan leader also urged him to invest in agriculture.
Angola had called on interested companies and individuals to invest in its 200,000 barrels per day Lobito Refinery after it launched the public tendering process last August.
During the visit, the billionaire businessman also opened a subsidiary of Dangote Industries in Angola to consolidate his investment drive in multiple sectors.
President Lourenço received Dangote and the members of his entourage in the audience last Tuesday.
A source privy to the visit told THISDAY that Dangote’s interest spans multiple sectors, including the Lobito Corridor project, oil and gas, and cement production.
It was also gathered that Dangote also held working meetings with the heads of state-owned oil company Sonangol, the country’s apex regulator of the oil and gas industry, the National Agency of Petroleum, Gas and Biofuels (ANPG), and other entities.
“During the meeting with President Lourenço, Dangote expressed interest in investments in the Lobito Corridor project, acquisition of onshore and offshore oil blocks in Angola, and investment in cement factories. President Lourenço invited Dangote to invest in oil and gas, cement, agriculture and refining,” the source said.
The Lobito Refinery located in Benguela province will have a capacity to process 200,000 barrels per day of crude oil.
Angola had called on interested companies and individuals to invest in its Lobito Refinery after it launched the public tendering process last August.
The proposed corporate governance structure shows that private investors will own a 70 per cent stake, with state oil firm Sonangol controlling a 30 per cent stake.
Dangote’s subsidiary in Angola will oversee operations such as the Lobito Refinery and investments in both oil blocks and cement plants.
It was gathered that Dangote may choose to grab a large chunk of the 70 per cent stake that is up for grabs by private investors.
The multi billionaire businessman, it was learnt, may also explore the opportunity of building another refinery.
THISDAY gathered that before he visited Luanda, Dangote had held a meeting with Ambassador José Bamóquina Zau in Abuja to finalise the visit.
“I appreciate the attention of His Excellency João Lourenço at this moment when Africa must become increasingly united with its people. Angola’s economic situation has improved dramatically. We’re hearing positive reports from those visiting, and this encourages our desire to invest,” Dangote had told the Angolan Ambassador.
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