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 Dangote Wants To Establish Business Unit For Lagos Oil Refinery In London

The richest man in Africa, Aliko Dangote is planning to establish an oil company, possibly in London.

  It is a move to help in the supply of crude oil and materials for the production of his new wife in Nigeria, according to six sources with knowledge of the matter.

The move will reduce the role played by major international trading companies, which have been negotiating for months to provide the refinery with funds and crude oil instead of products exported to foreign countries. The giant oil refinery with the production of about 650,000 barrels per day is planning to produce more oil in the world and traders are closely watching how it will manage its operations.

Dangote, whose wealth is estimated by Forbes magazine at $12.7 billion, did not respond to several requests or comments.

BP, Trafigura and Vitol among others have met with Dangote in Lagos and London in recent weeks to offer a loan of about three billion dollars for the work the refinery needs to buy more crude oil, according to business sources. they told the Reuters news agency.

Sources also told Reuters that the new trading group will be headed by former Essar trader Radha Mohan. He started working with Dangote in 2021 as the director of supply and international business, according to his Linkedin page. Two sources said the team is in the process of hiring two new traders.

It took almost ten years to complete the construction of the oil refinery, at a cost of 20 billion US dollars, which exceeded the budget by some 6 billion dollars.