Oil discovery in Lagos State excites Dangote

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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