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Dangote Refinery in crude supply negotiations with Libya

Published

2 months ago

July 21, 2024

To get around issues with local supply, Nigeria’s Dangote refinery is in negotiations with Libya to get crude for the 650,000 barrels per day (bpd) plant. A senior official stated that the refinery would also look for Angolan oil.

The $20 billion refinery, the largest in Africa, was constructed on the outskirts of Lagos by Africa’s richest man, Aliko Dangote. Its purpose is to eliminate Nigeria’s reliance on imported fuels due to inadequate refining capacity.

Since starting operations in January, Dangote has not been able to obtain sufficient crude supplies from Nigeria, the largest oil producer in Africa, beset by poor investment, theft, and pipeline vandalism. Dangote has had to buy petroleum from the US and Brazil, among other places.

“We are talking to Libya about importing crude,” Dangote refinery senior executive Devakumar Edwin told Reuters late on Saturday. “We will talk to Angola and some other African countries.”

He added that foreign traders and oil corporations were among the largest purchasers of Dangote’s gasoil, which was mostly being exported, but he would not elaborate on the specifics of the discussions.

“The biggest off-takers are the two big traders Trafigura and Vitol and BP and, to some extent, even TotalEnergies. But all of them are saying they are taking it to offshore,” Edwin said.

According to traders and shipping statistics, Dangote is displacing European refiners in the gasoil market by increasing exports to West Africa.

By 2050, the nuclear sector wants to treble its capacity.

According to Edwin, Dangote’s oil trading division was running, employing people in Lagos and London to assist with product sales and supply management. The intended trading arm was initially revealed by Reuters in March.

In a recent dispute with Dangote, Nigeria’s upstream authority claimed that the fuel’s sulphur concentration exceeded the mandated 200 parts per million (ppm). Rejecting that claim, Aliko Dangote stated that sulfur levels had been higher at the beginning of production but have since dropped to 88 parts per million (ppm) and would reach 10 parts per million in early August as output increases.

Related Topics:DANGOTE REFINERY Featured Nigeria

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VenturesNow

Ezz al-Arab appointed as Egypt’s CIB chairman

Published

3 hours ago

September 16, 2024

Ifeoluwa Dada

Commercial International Bank (CIB), Egypt’s largest private bank, announced on Monday that long-time chairman and previous CEO Hisham Ezz al-Arab will become CEO.

Neveen Sabbour, a board member, will take over as chairman, according to a statement. Hussein Abaza, the outgoing CEO, will be replaced by Ezz al-Arab, who will hold the role for three years.

In Egypt, the market share held by traditional banks is expected to reach US$35.84 billion. As more clients choose online and mobile banking options, Egypt’s banking industry is seeing an increase in digital banking services.

The new appointments are part of “to lead the bank’s multifaceted business transformation and continue its programme to support recognised potential future leaders,” the announcement stated.

Ezz al-Arab, chairman and managing director since 2002, resigned in October 2020 due to “compliance concerns” from the national bank.

In August 2022, a year before his tenure expired, central bank governor Tarek Amer resigned due to a currency crisis. Ezz al-Arab was requested to rejoin as chairman in December.

VenturesNow

Nigerian inflation falls again, drops to 32.15% in August

Published

3 hours ago

September 16, 2024

Ifeoluwa Dada

Nigeria’s August inflation rate declined for a second month to 32.15% from 33.40% in July, the statistics office reported on Monday. This comes after the month of July saw the first decrease in consumer inflation in Africa’s largest country in almost a year.

Analysts predict August’s slowdown may be short-lived after two gas price increases this month enraged citizens facing the worst cost-of-living crisis in a generation.

The removal of a decades-old gasoline subsidy, devaluation of the naira currency, and increase in energy costs by President Bola Tinubu have raised prices.

Reforms attempt to boost economic growth and public finances.

The central bank’s next interest rate decision next week may be influenced by inflation figures. The apex bank has hiked rates four times this year to curb inflation, and economists say July’s hike may be the last.

Further petrol price increases and northern flooding that swept away crops could raise food prices.

“On the whole, disinflation should continue with the headline rate falling below 30% by year-end, but upside risks remain,” Capital Economics Africa analyst David Omojomolo wrote.

He claimed rising petrol prices might “slow the pace of the disinflation process” and that the central bank would not drop rates until early next year.

Food inflation dropped from 39.53% to 37.52% in August. It remained the greatest inflation driver in August.