• 17 hours PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 19 hours Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 21 hours Syrian Rebels Relinquish Control Of Major Gas Field
  • 22 hours Schlumberger Warns Of Moderating Investment In North America
  • 23 hours Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 24 hours Energy Regulators Look To Guard Grid From Cyberattacks
  • 1 day Mexico Says OPEC Has Not Approached It For Deal Extension
  • 1 day New Video Game Targets Oil Infrastructure
  • 1 day Shell Restarts Bonny Light Exports
  • 1 day Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 1 day Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 2 days British Utility Companies Brace For Major Reforms
  • 2 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 2 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 2 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 2 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 2 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 2 days Rosneft Signs $400M Deal With Kurdistan
  • 2 days Kinder Morgan Warns About Trans Mountain Delays
  • 2 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 3 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 3 days Russia, Saudis Team Up To Boost Fracking Tech
  • 3 days Conflicting News Spurs Doubt On Aramco IPO
  • 3 days Exxon Starts Production At New Refinery In Texas
  • 3 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 4 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 4 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 4 days China To Take 5% Of Rosneft’s Output In New Deal
  • 4 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 4 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 4 days VW Fails To Secure Critical Commodity For EVs
  • 4 days Enbridge Pipeline Expansion Finally Approved
  • 4 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 days OPEC Oil Deal Compliance Falls To 86%
  • 5 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 5 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 5 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 5 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 5 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 5 days Aramco Says No Plans To Shelve IPO
The U.S. LNG Boom Could Be About To Stall

The U.S. LNG Boom Could Be About To Stall

United States LNG has seen…

Big Oil Refuses To Give Up On The Barents Sea

Big Oil Refuses To Give Up On The Barents Sea

Despite failures in the Barents…

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