Dangote Refinery to supply 12.75% stake to new traders after NNPC withdrawal – Report
Dangote Oil Refining Firm (DORC) plans to divest a 12.75% stake in its refinery to new traders after the Nigerian Nationwide Petroleum Company (NNPC) Restricted withdrew from fulfilling its obligations for a 20% acquisition of the refinery.
That is contained in a Fitch Ranking report on Dangote Industries Restricted (DIL), Nigeria’s greatest Indigenous conglomerate.
The report which focuses on liquidity considerations and debt restructuring of the corporate confirmed that NNPC’s discount of the acquisition of the refinery from 20% to 7.2% means the corporate will supply the remaining 12.75% to new traders.
Fitch famous that the group tends to service its vital syndicated mortgage maturing in August 2024 from the fairness divestment.
“In 2021, Nigerian Nationwide Petroleum Company (NNPC) acquired a 7.25% stake in DORC’s (Dangote Oil Refining Firm) venture entity for USD1.0 billion, with an choice to buy the remaining 12.75% stake by June 2024.
“Because the possibility has not been exercised, the group plans to divest a 12.75% stake in DORC in 2024. The group intends to service its vital syndicated mortgage maturing in August 2024 from the fairness divestment. Nonetheless, well timed divestment and assembly the upcoming maturity is very unsure in our view,” Fitch stated.
Backstory
Nairametrics had earlier reported that the Chief Government Officer (CEO) of Dangote Refinery, Aliko Dangote, stated that the Nigerian Nationwide Petroleum Company (NNPC) Restricted now not owns a 20% stake in Dangote Refinery.
The enterprise mogul revealed that the Nigerian oil firm now owns solely 7.2% of the refinery as a result of NNPC’s failure to pay the stability of their share, which was due final month in June.
He acknowledged that whereas the NNPC had promised to offer the funds, it has been unable to fulfill its obligations, thus decreasing its stake within the refinery to 7.2%.
“The Treaty was truly 20% which we had with NNPC and they didn’t pay the stability of the cash up until final 12 months then we gave them one other extension up until June (2024) and so they stated that they might stay the place they’ve already paid which is 7.2%. So NNPC, the federal government (sic) owns solely 7.2%, not 20%.” Dangote acknowledged.
Following Dangote’s announcement, the spokesperson of NNPC, Olufemi Soneye, additionally launched an announcement confirming that NNPC determined to cap its stake at 7.2% because it now focuses on different funding alternatives.
What you must know
- The Dangote Refinery is an enormous oil venture positioned within the Lekki Free Zone, Lagos, Nigeria, boasting a capability of 650,000 barrels per day (BPD).
- Owned by the Dangote Group, it goals to change into Africa’s largest oil refinery and the world’s greatest single-train facility.
- The refinery is predicted to generate 9,500 direct jobs and a further 25,000 oblique jobs, offering a considerable {economic} enhance to the area.
- As soon as totally operational, the refinery will produce roughly 50 million litres of petrol and 15 million litres of diesel every day, equating to 10.4 million tonnes of petroleum merchandise yearly.
