4 months ago
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The Nigerian National Petroleum Company Limited (NNPC Ltd) said it now owns a 7.2 per cent stake in the 650,000 barrels per day Dangote refinery.
Olufemi Soneye, the chief corporate communications officer of NNPC Ltd, disclosed this in a statement on Sunday.
The NNPC Ltd made this known in reaction to reports that the company no longer owns a 20 per cent stake in the refinery.
Speaking at a press briefing at the refinery earlier on Sunday, the President of Dangote Group, Aliko Dangote, said NNPC Ltd now owns only 7.2 per cent stake in the refinery due to its failure to pay the balance of its share, which was due in June.
“The agreement was actually 20 per cent, which we had with NNPC, and they did not pay the balance of the money up till last year, and then we gave them another extension up till June (2024), and they said that they would remain where they have already paid which is 7.2 per cent. So NNPC, the government (sic) owns only 7.2 per cent, not 20 per cent,” Mr Dangote said, according to reports.
Confirming the development in a statement, the NNPC Ltd said its period assessment of the investment portfolio led to the decline in its share of the refinery.
“NNPC Limited periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals.
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“The decision to cap its equity participation at the paid-up sum was made and communicated to Dangote Refinery several months ago,” the NNPC Ltd said.
The 650,000 barrels per day Dangote Petroleum Refinery commenced production of diesel and aviation fuel in January.
Announcing the commencement of production, the company said the refinery had received six million barrels of crude oil at its two SPMs 25 kilometres from the shore.
The first crude delivery was done on 12 December 2023, and the sixth cargo was delivered on 8 January.
The company made a further move towards the commencement of the production of refined petroleum products with the receipt of an additional one million barrels of bonny light crude supplied by the Nigeria National Petroleum Company (NNPC Ltd).
In April, the company commenced supplying petroleum products to the local market.
Last month, Mr Dangote said that Premium Motor Spirit (PMS), popularly known as petrol, refined at the refinery, will hit the market by July.
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