Business
EXPECTATIONS ABOUT DANGOTE REFINERY INAUGURATION ARE EXTREMELY EXAGGERATED
Published
5 months agoon

EXPECTATIONS ABOUT DANGOTE REFINERY INAUGURATION ARE EXTREMELY EXAGGERATED
From Editorial Board, Africa Oil+Gas Report
The ceremony around the planned visit by the Nigerian President to the Dangote Refinery on May 22, 2023, will peak with a cutting of the ribbon, inaugurating the 650,000 Barrels per stream Day Plant, located in the Eastern flank of Lagos, the country’s commercial city.
Everyone, it seems, look forward to the production of petroleum products from the plant after that symbolic activity.
But it will not happen.
As President Muhammadu Buhari leaves office a week after commissioning one of the largest single train hydrocarbon processing plants on the planet, he could be forgiven for believing he had had his wish to be in such a large place but technology does not sit well with politics.
The ongoing technical commissioning process has not gotten anywhere close to the point of introducing raw hydrocarbon into the plant, let alone delivering petroleum products.
One key challenge of Nigeria’s chattering classes is that they hardly look up the regulation. Hydrocarbon will be introduced only when the Nigerian Midstream Downstream Regulatory Agency (NMDPRA) approves and issues Licence To Operate the Refinery to Dangote.
Speculations about inauguration and commissioning are just, well, speculations. Both words do not appear anywhere in the Procedure to License a Refinery in the Nigerian law.
The three stages are:
License to establish a Refinery
Approval to construct Refinery
License to Operate the Refinery
Nowhere does inauguration or commissioning appear.
So the Refinery can be inaugurated or commissioned as the Licensee desires, as long as no attempt is made to operate the Refinery by introducing crude oil and make products for sale, it does not concern NMDPRA.
The claim that some “large sub-sea pipeline infrastructure connected to Oil and Gas blocks in the Niger Delta region for supply of crude feedstock” is a false narrative. What’s in the plan is that Single Point Mooring (SPM) buoys will play the transportation role in input crude delivery and output petroleum products.
We live in a society where optics trumps everything. Buhari has been president for 8 of the 9 years that the Refinery project has been on. What is wrong with Dangote asking the President to inaugurate the Refinery so his name is on the marble when the Refinery becomes fully operational? Afterall no law will be breached by such gesture?
That said, Aliko Dangote the billionaire owner of the Refinery is determined that the 19billion-dollar project, the second of his three, hydrocarbon processing mega projects (Fertilizer, Refinery and Petrochemicals) is delivered by end of 2023.
The technical work has gone far, involving trial-running every single equipment, which has taken a while because of the lengthy time of construction. Some equipment were installed six years ago, and were just standing there in the air, water or even underground. Anything, literally could have happened.
As of February 2021, the installation of the Crude Distillation equipment had been completed. So had the kitting up of the Residue Fluid Catalytic Cracking Unit (RFCCU).
Supply chain challenges thrown up by the COVID-19 did slow down work, but the construction of Africa’s largest hydrocarbon processing factory picked up steam again in mid-2021.
“The electrical and instrumentation works are usually invisible to the gaze of non-refinery workers, but they are key. Their installation needed extreme care and it consumes over 30% of the Refinery construction time,” say several managers familiar with the project.
“A lot of our contractors are Chinese. Those who went home couldn’t come back quickly, but the project workflow recovered and those installations especially that of the Crude Distillation Column, which arrived Nigeria in December 2019 were expedited.
“We will have 15 process units in the Refinery and they must all work together” the managers tell us.
The operations planning will emphasize the mantra at the commissioning: we must flow everything out with air, then do it with water, then with steam, them with air again”. This is all to ensure that the likelihood of moisture absorption is zero, as the contrary will lead to cracks.
“The equipment must be pickled. What that does is that it oxidizes the facility”. The Dangote Refinery is significantly an Indian supervised operation.
But a significant percentage of the 1,000 Nigerian engineers sent to training in India for the eventual operations of the facility, have returned and are currently engaged on site.
The relationship between the Nigerian crude oil refining sector and Indian engineering expertise goes back to 1988, when the second (larger) refinery in Port Harcourt, the major city in the country’s oil producing Delta region was being constructed.
“Some of the experts working on Operations Planning were part of the construction of the Port Harcourt Refinery 35 years ago”, our sources say.Mr Dangote initially announced the likelihood of the project in 2013. But it was at the All-Convention Luncheon at the Annual Conference of the Nigerian Association of Petroleum Explorationists NAPE, in November 2014 that he provided the first relatively comprehensive details of the facility. He told the roomful of geoscientists that the capacity had increased from 500,000 BSPD to 650,000 BSPD.
Dangote Industries was advised by Jacobs Engineering and it licensed the Honeywell UOP for the basic engineering design. On a daily basis, the facility will have the capacity to produce 59million liters of gasoline, 20million litres of kerosene and 9million litres of diesel and others.
The construction has taken a while and has been the most excruciating economic challenge Nigeria has ever faced. Would Dangote Industries have delivered this project much earlier if it had awarded it to a world- class EPC contractor like Bechtel, TechnipFMC, Siemens, KBR?
“Yes”, said Alex Ogedengbe, a retired Group Executive Director at NNPC who was involved in the construction of the Warri and Port Harcourt Refineries in the 1980s. “There are just about six or seven such EPC contractors in the world,” he explained. Mr Ogedengbe was speaking at a private webinar organized by oil and gas analyst, Ronke Onodeko in April 2020.
Dangote sources maintain that the cost would have been at least 30% higher if that route had been taken. And while it could be argued that Dangote Industries could have had good value for money if a Bechtel or KBR had handled the construction, multiple sources argue that the delay could have been minimized if the current structure had been in place since inception. The company went into this project with the mindset of constructing a cement plant, which was its major competence before this huge assignment. “We wasted the most time at the engineering stage”, one manager recalls. “A reputable EPC contractor would still have hired expertise from outside like we are doing and subcontract several units. Dangote Industries bought brand new equipment for this work; an EPC contractor might not have even done that, but it would have coordinated things better at the outset.”
One more advantage of building it yourself: all the equipment you purchase for logistics and construction purposes are yours.
Everyone we spoke to agreed that things began to take very good shape when Giuseppe Surace came along. The Italian engineer who had been Chief Executive of Saipem in Nigeria and Brazil, joined the project in June 2017 as the Chief Operating Officer. “On the factory floors, in the Executive Offices, everywhere on site, the consensus is that one of the best decisions that Aliko Dangote made was Surace’s appointment. “He saved the project” said our sources.
A highlight of the swirling speculations around President Buhari’s impending visit is the description of how crude oil will be pumped into the Refinery. One widely circulated message talks of large sub-sea pipeline infrastructure connected to Oil and Gas blocks in Niger Delta region for supply feedstock “.
This is a false narrative.
The truth is that Single Point Mooring SPM buoys will play a huge role in input crude delivery and output petroleum products. There are three of them either way. Three SPMs will deliver the input crude oil from vessels into a jetty from which it is pumped into the plant. And three SPMs will ferry petroleum products out to vessels on the sea for export. “We have facility to evacuate through roads, we have large loading capacity (103 loading terminals) and we can evacuate 75% of our production through road and we can evacuate 75% of our production through the sea so that if we want to export”, Dangote officials have repeatedly explained.Within Nigeria, we can evacuate to Warri, Port Harcourt, Calabar and so on, those options are available”, the officials say.
On the table is the idea of a 6-lane road through Epe, a town in the east of Lagos. But what of the supply of the product to Lagos? Will some of it be through Lekki Expressway? The subject of the quality of Nigerian roads to take in the products, through land tankers is still a fraught one.
Editorial, Oil+Gas Report
Sahara weekly online is published by First Sahara weekly international. contact saharaweekly@yahoo.com

Business
OVER 3m MSMEs TO BENEFIT AS NIGERIA LAUNCHES FG/ALAT SKILLNOVATION
Published
17 hours agoon
September 29, 2023
OVER 3m MSMEs TO BENEFIT AS NIGERIA LAUNCHES FG/ALAT SKILLNOVATION
**No going back on creating inclusive economy, VP Shettima declares*
In a bid to support information technology revolution that would, in turn, extend the reach of economic and social interactions as well as enhance productivity growth in Nigeria, the Federal Government and ALAT have launched Skillnovation Programme.
The initiative will provide over three million Nigerians with essential digital skills required to succeed in the global economy.
Speaking during the launch of the programme at the Banquet Hall of the Presidential Villa, Abuja, on Friday, September 29, 2023, the Vice President, Sen. Kashim Shettima, described the Skillnovation as a “transformative initiative” that “ushers in a new era of digital empowerment for” Nigerians.
He said, “We are compelled to tread this path by the direction in which the world has headed, a world of disruptive technologies redefined by the fourth Industrial Revolution.
“This initiative is a response to the evolution of the modern business environment, an acknowledgment that digital skills have become the cornerstone of economic ease and expansion.”
The Vice President hinted that the gathering is one of the many to come and an occasion to reassure the nation that President Bola Ahmed Tinubu is fully committed to supporting small businesses across Nigeria.
The Skillnovation Programme will establish 15 state-of-the-art ICT centres, strategically placed across Nigeria, to provide individuals and businesses alike with access to cutting-edge digital training, resources, and support.
The first phase of the programme will focus on the states of Katsina, Anambra, Borno, Lagos, Oyo, and Kano, while the second phase will include Delta, Kaduna, Ogun, Bauchi, Kwara, and Ekiti States.
Giving an insight into how the country would benefit from the programme, Vice President said, “Nigeria, with its expanding MSME sector of close to 40 million, has the potential to lead business innovation beyond Africa. The Skillnovation Programme, therefore, aims to unlock this immense potential. The initiative is designed to provide the necessary tools and skills for our MSMEs to thrive and compete on the global stage.
“As you have witnessed, ladies and gentlemen, the Skillnovation Programme is not a mere promise; it is a resounding commitment to the Nigerian people,” the Vice President added. “It’s in pursuit of this administration’s resolve to empower our youth and MSMEs and to create a more inclusive and prosperous Nigeria. Today, we are translating that commitment into action, and we intend to be your allies in your race to take over the world through your enhanced skills.”
VP Shetimma also assured that nobody will be left out of the Skillnovation Programme, regardless of age, gender, or disability.
“There will be no disadvantaged demographic in accessing this opportunity. Our youth, women, and persons with disabilities have found friends and allies and will be favored in our proposed single-digit loan schemes for our valued MSMEs, for which talks are already ongoing with the Bank of Industry and other critical stakeholders and partners,” he stated.
The Skillnovation Programme is a significant step towards achieving the Federal Government’s vision of a digitally empowered and economically prosperous Nigeria. By providing MSMEs with the essential digital skills and support they need to succeed, the programme will help to create jobs, boost economic growth, and improve the lives of millions of Nigerians.
Earlier in his welcome address, the Senior Special Assistant to the President on Job Creation and MSMEs, Mr Temitola Adekunle-Johnson, emphasised the significance of partnership, noting that government alone cannot address the challenges confronting Nigerians.
On his part, Managing Director of Wema Bank, Mr Moruf Oseni, commended the passion of the President and Vice President for empowering young Nigerians, even as he announced the establishment of skills training centres across 17 states, beginning with Lagos and Borno.
He said the programme will directly impact 2 million youths and 1 million small businesses across the benefitting States.
The MD expressed optimism that the scheme will be impactful, particularly empowering young Nigerians and preparing them for the challenges of the future.
In his goodwill message, Minister of Communications and Digital Economy, Mr Bosun Tijjani, said President Tinubu administration’s will leverage the enthusiasm of youths in the technology space to launch Nigeria as a global power in sector.
He called on other private sectors to collaborate more with government to actualize the objectives of job creation.
On his part Governor Ahmad Aliyu of Sokoto State pledged the state government’s support for the success of the programme.
Also present at the event were the Ministers of Agriculture, Sen. Abubakar Kyari; Labour and Employment, Hon. Simon Lalong; Deputy Governors of Borno, Umar Kadafur; Kaduna, Hadiza Balarabe; Anambra, Onyeka Ibezim; Jigawa, Aminu Usman, and Heads of government agencies.
*Stanley Nkwocha*
*Senior Special Assistant to the President on Media & Communications*
*(Office of the Vice President)*
*29th September, 2023*
Business
Foundation Provides Financial Support To Outstanding Pupils In Ogun
Published
22 hours agoon
September 29, 2023
Foundation Provides Financial Support To Outstanding Pupils In Ogun
In a bid to compliment government efforts at providing qualitative education to vulnerable children in Ogun schools, Obaruwa Foundation, a non-profit organization on Friday launched fund support for pupils at Ogbogbo Baptist Primary School, Ogbogbo-Ijebu in Ijebu North East local government area of the state.
Speaking through Mr Tunde Oresanya at the presentation of the cash gifts, the founder of the foundation, Omooba Adekunle Ayoola said the fund support has become an annual gesture of the group in reaching out to outstanding pupils who despite the lean purse of their parents came out with flying academic records in their examination.
According to him, the beneficiaries of the latest fund support were drawn from primary one to six, and pupils who came 1st, 2nd and 3rd in each class were rewarded.
Omooba Ayoola, a Poland based security expert whose passion for education support has received various outstanding laurels stressed that he would continue to employ various measures and programmes to improve the lives of the children, including educational sponsorships, educational supports, advocacy and healthcare assistance.
In her remarks, Mrs B.A Kazeem, the Assistant Head Teacher of the school, expressed appreciation towards the annual educational support of the foundation, seeking for more support both from the government and donors alike.
Business
AfricentOCL UK Makes ‘Global Energy Awards 2023’ Finalists List
Published
24 hours agoon
September 29, 2023
AfricentOCL UK Makes ‘Global Energy Awards 2023’ Finalists List
It’s another major milestone for a top firm in the maritime business sector, AfricentOCL UK, as it made the finalists list of the 2023 edition of Platts Global Energy Awards.
In the carefully screened list of 207 credible energy companies, AfricentOCL UK tops five others in the Energy Transition (Mainstream) category. According to S&P Global Platts, the organizers of the awards event, firms are recognized based on their achievements and results, positive impact on customers and the industry.
“The ‘Global Energy Awards’ indicates the direction in which the energy industry is headed. It is about recognizing the energy sector’s exponential growth and rapid progress, thereby acknowledging companies and individuals working on the crucial, innovative, practicable solutions that will solve the energy industry challenges,” the organizers declared.
It is AfricentOCL UK’s second global honour within a space of eleven months. Making the list as one of the finalists in the Global Energy Awards was coming soon after its victory as the 2023 Greater London Enterprise Awards’ ‘Best Maritime Materials and Vessel Chartering Provider’ winner.
Expressing his joy at the fresh honour for his business empire, AfricentOCL UK CEO, Mr. Juwon Lawal Razaq, stated that such an honour coming from an internally recognized outfit like S&P Global Platts is to him a good ego booster, which encourages business outfits to aspire to achieve more exploits. “Making the finalists list, for us, is a great leap to winning. We understand that people are watching us, they know that we have the gifts and skills and we have never been afraid to show them toward making the industry greater. So, it’s a great way to announce our future win, and we will celebrate the honour,” Juwon Lawal affirms.
A special reception to mark Platts Global Energy Awards’ 25th anniversary will be held in New York on December 7, 2023, where winners will be announced.
Cover Of The Week

- “Democracy in West Africa in Danger” – President Akufo-Addo to Economic Community of West African States (ECOWAS) Parliament September 29, 2023
- South Africa: Committee on Women, Youth and Persons with Disabilities Adopts its Report on National Council on Gender-Based Violence and Femicide (NCGBVF) Bill September 29, 2023
- Special Representative Leonardo Santos Simão Concluded Five-day Visit to Nigeria September 29, 2023
- African Continental Free Trade Area to create immense opportunities for Algerian businesses September 29, 2023
- Somalia launches US$11.4 million project to strengthen emergency care services at regional hospitals September 29, 2023
- World Health Organization (WHO) scales up response following Sudan declaration of cholera outbreak September 29, 2023
- Merck Foundation and African First Ladies marks World Heart Day 2023 by providing 750 scholarships of Preventative Cardiovascular, Diabetes, Endocrinology and Obesity and Weight Management for doctors from 50 countries September 29, 2023
- Nigeria: Urgent funds needed to manage diphtheria outbreak, with more than 7,200 cases and 453 deaths September 29, 2023
- South Africa: Water and Sanitation interacts with political leaders and councilors on water supply issues September 29, 2023
- Joint Communiqué on the occasion of working visit to the Republic of South Africa, by the Right Honourable, Samuel Ntsokoane Matekane for official launch of Bi-National Commission September 29, 2023