The Organization of Petroleum Exporting Countries (OPEC) is upbeat at the prospect of Dangote Oil Refinery serving to drive world crude oil refining capacity increase, especially in Africa by 2020.
The organization, in the current edition of its World Oil Outlook (WOO), said Dangote Refinery, which is the first privately owned and operated refinery in Nigeria, will refine as much as 650,000 barrels of crude oil per day at installed capacity.
Presently, total world oil production in 2019 averaged 80,622,000 barrels per day. Approximately 68 per cent is coming from the top 10 countries, and an overlapping 44 per cent from the 14 current OPEC members.
OPEC said in the outlook that the world is expecting some capacity expansion coming from Nigeria in Nigeria by 2020, either through the rehabilitation of existing refineries - in part to raise their utilisation rates - or through grassroots projects, like the Dangote Oil Refinery.
OPEC said the completion of the project would reduce the importation of petroleum products in West Africa. "Since the project is in West Africa, its implementation does not necessarily alter the situations in North and East/South Africa. What should happen, especially in West Africa, is a reduction in the need and opportunity for product imports," it added.
According to OPEC, in Africa, there are some 50 listed refining projects, which, if all built, would add nearly 5mb/d of new refining capacity to the continent.
Reacting to the OPEC position, Group Executive Director, Strategy, Portfolio Development and Capital Projects, Dangote Industries Limited, Mr. Devakumar Edwin, said the organization was correct in its estimation and that all hands are on deck to deliver the refinery on time.
He stated that the Dangote Group's ongoing refining and petrochemicals project can meet 100 per cent of the domestic requirement of all liquid petroleum products (gasoline, diesel, kerosene and aviation jet), leaving the surplus for export in line with the OPEC expectation.
He said the high volume of PMS output from Dangote Refinery would transform Nigeria from a petrol import-dependent country to an exporter of refined petroleum products.