The Nigerian National Petroleum Company Ltd has reacted to claims from the Chief Executive Officer of Dangote Refinery, Aliko Dangote, that the national oil company no longer owns a 20 per cent stake in Dangote Refinery.
The business mogul had claimed that the Nigerian oil company now owns only 7.2 per cent of the refinery due to the NNPC’s failure to pay the balance of their share, which was due last month in June.
He had stated that while the NNPC had promised to provide the funds, it has been unable to meet its obligations, thus reducing its stake in the $19bn refinery to 7.2 per cent.
“NNPC no longer owns 20 per cent stake in the Dangote refinery. They were met to pay their balance in June, but have yet to fulfill the obligations. Now, they only own a 7.2 per cent stake in the refinery,” Dangote said.
But reacting to the claims made by Dangote, the NNPC said in a statement that it periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals.
Specifically, the company said in a statement issued by the
Chief Corporate Communications Officer, Olufemi Soneye that the
decision to cap its equity participation at the paid-up sum was made and communicated to Dangote Refinery several months ago.
He said, “NNPC Limited periodically assesses its investment portfolio to ensure alignment with the company’s strategic goals.
“The decision to cap its equity participation at the paid-up sum was made and communicated to Dangote Refinery several months ago.”
In March 2021, the NNPC was planning to raise the sum of $2.76bn in credit facility to purchase 20 per cent stake in Dangote refinery.
The NNPC Chief Operating Officer, Refining and Petrochemicals, Mr Mustapha Yakubu, had said this plan is to secure Nigeria’s place in the massive project, making it resource-dependent.
He had said this is part of the then government’s plan to work with private oil companies to safeguard the country’s energy security without underming the plans to rehabilitate its own refineries.
NewsNGR had reported that following the mechanical completion of the Old Port Harcourt Refinery in December, last year, a total of one million barrels of crude oil has been supplied to the plant by the Nigerian National Petroleum Company Ltd as refining of petroleum products from the facility is set to commence.
The one million barrels of crude oil were supplied to the refinery in two tranches with the latest coming in last Wednesday.
About 170 litres of refined petroleum products can be obtained from a barrel of crude oil. This implies that the one million barrel supplied by the NNPC to the Port Harcourt refinery can provide an estimated 170 million litres of Premium Motor Spirit, popularly called petrol and other refined products.