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
hectres 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 $7.5billion through import substitution.
The
entire project will cost the Dangote Group over $12billion with the refinery
projected to be ready by first quarter of 2019 while the fertilizer plant will
be ready early 2018.
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