Dangote Seeks Funding to Boost Crude Supply for $20 Billion Refinery
Nigeria’s richest businessman Aliko Dangote is raising billions of dollars to increase crude supplies to his $20 billion refinery in Lagos, Nigeria. Dangote is in talks with banks, development lenders and oil traders to secure funding to stabilize supply to the refinery and ensure it reaches full operational capacity, the Financial Times reported. Last month, the company reached an agreement with Nigerian authorities to supply 365,000 barrels per day of crude oil to the refinery. Given that the refinery can refine 650,000 barrels of crude oil per day, it would need to refine an additional 285,000 barrels to reach full operating capacity. However, ensuring a supply of 300,000 barrels per day would cost about $2 billion every 90 days, so funding would need to be raised. The company already purchases crude oil from the United States and Brazil. It has also begun discussions with Libya and Angola to supply crude oil to refineries.
source: Namiris
