As the outbreak of the Coronavirus (COVID-19) continues to take a negative toll on the oil sector and causing a crash in the price, the Chairman of Dangote Group, Alhaji Aliko Dangote, is set to diversify his business empire as he moves to take the oil sector by storm.
Following the two assets acquired from Royal Dutch Shell Plc, according to reports, the 62-year-old Kano-born businessman will reportedly commence production in July this year.
During an interview with the Group Executive Director, Dangote Industries Ltd, Devakumar Edwin, he revealed that Dangote is also working with Chinese and Malaysian contractors and has completed a development plan for the Kalaekule field on its Oil Mining Lease 72 asset.
Further revealing the plans of the company, Edwin stated that Dangote is targeting 20,000 barrels a day production which would later be expanded to 100,000 barrels a day for the two blocks.
He said “We are looking at the first phase of 20,000 barrels a day but our objective is to expand it to 100,000 barrels a day for the two blocks. If everything goes well, we can do that in 12 to 15 months because we are already doing the 3D seismic studies.”
Having already established himself in the cement, flour and sugar sectors, the company is expected to gross more revenue in the ongoing expansion project as the company aims to end Nigeria’s reliance on imported fuel.
Edwin also disclosed that as Dangote braces up for diversification, the plant will reach mechanical completion in December and full operations are expected to start by the middle of 2021.
Earlier, Thegistday reported that Dangote said that his company will make Nigeria the largest exporter of crude oil in Sub-Saharan Africa when the refinery is completed.
He made this known while speaking during the ‘Going for Growth 2.0’ put together by the Central Bank of Nigeria, CBN, in Abuja.
Advising the federal government to quickly diversify the Nigerian economy, Dangote stated: “The diversification of this economy is very important, in fact, we are late. Since 1979 that I came to Lagos, people have been talking about the diversification of the Nigerian economy. You can only diversify the economy through manufacturing and agriculture.”