• 4 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 7 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 10 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 13 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 6 mins More dumbed down? re Hong Kong Act of Congress
  • 12 mins U.S. Shale Output may Start Dropping Next Year
  • 18 hours EU has already lost the Trump vs. EU Trade War
  • 39 mins U.S. Shale To Break Records Despite Bearish Rhetoric
  • 3 hours Aramco IPO magic trick
  • 22 hours Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 17 hours What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 5 hours Winter Storms Hitting Continental US
  • 3 hours Petroleum Industry Domain Names
  • 1 hour Crazy Stories From Round The World
  • 18 hours PennEast Appealing Wacky 3rd Circuit Decision to Supreme Court
  • 23 hours Article: Did Exxon only make $39 Million onshore U.S. last quarter ?
  • 22 hours Last I Checked
  • 17 hours China 2019 - Orwell was 35 years out
The 5 Most Promising Foreign Oil Stocks

The 5 Most Promising Foreign Oil Stocks

Foreign oil stocks seem to…

U.S. Shale Growth To Flatline Within 2 Years

U.S. Shale Growth To Flatline Within 2 Years

Despite U.S. shale growth hitting…

CVS pharmacies Chevron and Exxon's Rockefellers State Street andNigeria’s Riches

Aliko Dangote

Aliko Dangote, arguably the richest man in Africa, has plans to build Nigeria’s first privately-owned crude oil refinery while also doubling his cement operations.

Speaking to Reuters, Dangote said that the new plant would cost $12 billion and could produce 650,000 barrels of oil per day. He expects the construction on the new plant to be done by 2018 with production up and running by 2019.

The plant would also include a fertilizer unit to be funded by “loans, export credit agencies and our own equity". Dangote’s also plans to build a gas pipeline through West Africa, and new cement plants in Cameroon, Ethiopia, Kenya, Mali, Niger, Nigeria, Senegal, Zambia and in Congo Republic.

Nigeria had been a major producer in crude oil, but poor refinery maintenance has resulted in its four refineries being unable to hit full output. Currently, the country imports approximately 80 percent of its fuel. Oil companies in the country have staggered under the decline in oil prices, and some have been unable to access cash because the Central Bank of Nigeria has imposed restrictions on foreign currency exchanges in an effort to prop up the sagging naira.

Earlier in the week, the CBN removed the peg that has kept the naira at a rate of 197 for over a year. The naira experienced a 30 percent devaluation as it was traded on the interbank market.

The cash crunch in Nigeria has caused many companies in the country to either go insolvent or make drastic changes, including laying off employees. However, a study done by Reuters during March and May indicated that Dangote’s companies secured a good share of cash at the “cheap official rate.” Dangote downplayed the idea that he had received preferential treatment, and said that the $161 million he bought from the CBN was due to the size of his business.

By Lincoln Brown for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play