The recent discovery of oil in Lagos in commercial quantity has been described as a good omen for the development of the oil and gas industry which Dangote refinery will benefit from.
Speaking in his office in Lagos during a visit by the leaders of the League of African Development Student (LEADS), Mr. Devakumar Edwin, Group Executive Director of the Dangote Industries Limited said it was a good development that Lagos is now a proud oil producing state adding that it will further strengthen oil output from the country.
He stated that Dangote Refinery and Petrochemical would be more than willing to partner the state and the federal government in ensuring that the oil production from Lagos add value to the economy of Lagos and the nation at large.
Said he: “We are very happy at the discovery of oil in Lagos. It is indeed a good and welcome development for us as a company. It will accelerate the growth level of the state and also be of immense benefits to the residents and the country at large. Not only will Lagos be regarded as an oil producing state and share out of the derivation fund, but Lagos will continue to be an invaluable partner to the Dangote Group with the Dangote Refinery in Ibeju-Lekki.”
Edwin pointed out that though the crude oil prices may be unattractive at the moment, which has made major IOCs to slow down, “it did not mean that the oil and gas industry was devoid of development.”
The Dangote Group boss said although it is just in its early phase, the Badagry oil find will be a lot more attractive for investments, when prices begin to rise at the international oil market.
“The crash in the global crude oil price is not making it attractive to invest and make a sustainable investment. No attractive investments in deep water, but perhaps shallow waters. Oil majors are cutting down on their investments, and also retrenching, I will be surprised if people go in fast into Badagry. But, by and large, It is a welcome find, for when the prices begin to rise, we will begin to reap the benefit.”
It would be recalled that the Dangote Group early last year ventured into oil and gas when it began the construction of the largest single industrial undertaking in the world, the Dangote Refinery and Petrochemicals.
The project sited at the Free Trade Zone, Ibeju-Lekki, Lagos, sitting on over 2,630 hectares of land, an area 8 times larger than Victoria Island, Lagos, will have a refining capacity of 650,000 barrels of crude per day compared to a combined capacity of 445,000bpd of all currently existing government’s four refineries.
When completed, the project is expected to meet the yearnings and aspirations of Nigerians who have been subjected to frequent acute scarcity of petroleum products and also save Nigeria over $7.5 billion through import substitution.
The entire project will cost the Dangote Group over $12 billion with the refinery projected to be ready by first quarter of 2019 while the fertilizer plant will be ready early 2018.