Firms to compensate Dangote refinery after fire incident at refinery

• Insurance companies in the nation have reaffirmed their commitment to promptly and efficiently resolving all valid claims
• This came about in the wake of the recent fire at the Dangote Refinery and Petrochemicals Company, located in the Lekki, Lagos
• The daily 650,000 barrels This year, in January, the Dangote Petroleum Refinery started producing aviation fuel and diesel

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The country's insurance sector has reaffirmed its dedication to the timely and effective resolution of all legitimate claims.

A source stated that the insurance firms' consortium is only awaiting Dangote's claims to be submitted. Photo Credit: Dangote Refinery
Source: UGC

This followed the recent fire at the Dangote Refinery and Petrochemicals Company, which is situated in Lagos' Lekki Free Trade Zone.

The Dangote Refinery fire incident was among the risks covered by a group of Nigerian insurance companies, according to a credible industry source who verified.

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The source further stated that the insurance companies offering the coverage are willing, and able to compensate the Dangote facility upon submission of a claim.

He stated that the insurance firms' consortium is only awaiting Dangote's claims to be submitted, and that the consortium is capable of handling such losses, according to Champion news.

The source maintained,

“Yes, the risk was insured by a consortium of insurance companies of which my company is one of them but I am not sure that the details and the lose estimate have been submitted. It is something that we can handle. Although the company had described the fire incident as a minor thing but you know that the kind of thing that Dangote Refinery will describe as a minor thing could still be big. But the insurance industry is still waiting.”

Recall that on Wednesday, June 26, 2024, an effluent treatment plant fire broke out at the Dangote Refinery.

Despite the fact that no one was killed, the massive refinery, the biggest in Africa, is reportedly assessing the damage caused by the fire incident before submitting a demand note to its insurers.

Group Head, Corporate Communications of Dangote Group Mr Anthony Chiejina who confirmed the incident then said

“we have swiftly contained a minor fire incident at our effluent treatment plant today. There is no cause for alarm as the refinery is operating and there is no record of injury or body harm to all our staff on duty”.

Following the delivery of its first crude on December 12, 2023, the 650,000 barrels per day Dangote Petroleum Refinery began operations in January of this year, churning out diesel and aviation gasoline.

The Nigerian National Petroleum Company Limited provided one million barrels of bright light crude to the company, which encouraged it to push for the manufacturing of refined petroleum products, but the ambition has not yet materialized.

Dangote Refineries has persisted in blaming sabotage for a number of the difficulties it faces in producing refined products, petrol foremost among them.

Dangote refinery confirms date for release of petroleum product

Legit.ng reported that Dangote Industries Limited has reiterated that production of Premium Motor Spirit (PMS), commonly known as petrol, will commence at the Dangote refinery in July 2024.

Devakumar Edwin, vice president of Oil and Gas at Dangote Industries Limited, stated this during a visit by the S&P Global team to the Dangote Refinery in Ibeju-Lekki, Lagos.

Earlier, Legit.ng reported that Dangote refinery set July 10–15, 2024, as the dates for supplying petrol products to the Nigerian market.

Source: Legit.ng