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The move is aimed at providing financial backing and crude oil supplies to Dangote’s refinery in exchange for product exports. Dangota’s colossal 650,000-barrel-per-day refinery is set to reshape global oil and fuel dynamics.
Africa’s richest man, Aliko Dangote, is about to establish an oil trading arm to be headquartered in London, to facilitate the operations of his upcoming refinery venture in Nigeria, according to media reports.
This move has the potential to sideline major global trading entities, which have been engaged in extensive negotiations for months. They are aiming to provide financial backing and crude oil supplies to Dangote’s refinery in exchange for product exports. Dangota’s colossal 650,000-barrel-per-day refinery is set to reshape global oil and fuel dynamics.
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The newly proposed trading division is expected to be spearheaded by former Essar trader Radha Mohan, who assumed the role of director of international supply and trading at Dangote in 2021. The team is set to expand in the coming days. The construction of the refinery, a project spanning nearly a decade, incurred costs of approximately US$20 billion, overshooting the initial budget by US$6 billion. The facility has commenced operations, refining an estimated 8 million barrels of oil between January and February. It may require several months to reach the potential.
