Dangote tempted by a listing of his refinery in the City

Dangote tempted by a listing of his refinery in the City
Dangote tempted by a listing of his refinery in the City

The group of the eponymous billionaire claims to be studying the possibility of listing its oil refining subsidiary on the London Stock Exchange due to lack of sufficient depth in the Lagos market. The Nigerian industrialist wants to make his gigantic refinery a hub for the supply of petroleum products throughout sub-Saharan Africa.

Nigerian billionaire Aliko Dangote’s oil refinery is considering a dual listing on the Lagos and London stock exchanges, reports Reuters in a dispatch on Tuesday, May 28, citing a Dangote Group executive. “We have listed all our companies on the stock exchange. The Nigerian Stock Exchange (NSE) will not have sufficient depth to exclusively accommodate the oil refinery. We should list it on the London Stock Exchange, but also on the NSE,” the director of the Dangote group’s oil refining branch, Devakumar Edwin, told Reuters.

20 billion dollars invested in the refinery

The refinery, whose construction required a colossal investment of $20 billion, has a capacity of 650,000 barrels per day (bpd). In mid-May, it concluded a supply agreement with the French group TotalEnergies after launching a call for tenders to identify suppliers capable of supplying it with two million barrels of West Texas Intermediate (WTI) crude (editor’s note: the quality which serves as a benchmark on the market) per month for one year starting in July.

This agreement comes in a context where the company is working to secure oil supplies while it has been delivering diesel and jet fuel to oil traders since last April, and is planning the delivery of its first gasoline production from next June.

The Nigerian industrialist wants to make its refinery, which will be commissioned in January 2024, a hub for the supply of petroleum products in West, Central and East Africa.

By AJ.SEditorial Committee

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