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DMEA NEWS IN BRIEF
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COMPANIES REFINING
FitchassignsDangotefinal Condensaterefineriescould seniorunsecured‘AA(nga)’ protectagainstsanctions
Science, Technology and Innovation, Dr. Olorunnimbe Mamora and the Minister of State, Chief Henry Ikechukwu Ikoh have expressed their determination to leave a visible footprint in the development of Science, Technology and Innovation in Nigeria’s business environment.
In pursuit of this objective, Chief Henry Ikoh visited the United States Consulate Commercial Department in Lagos for a discussion on the immediate deployment of Modular Refinery Technology in the oil and gas sector, with emphasis on a business-driven approach.
Ikoh said there is urgent need for immediate deployment of modular refineries in the nine Niger Delta States, starting
with states that have the most conducive environment with reference to security and business interests.
He emphasised that such investments will improve the economic outlook of the country and enhance the welfare of the Niger Delta people, as well as create jobs for local artisans, which will help to curb operation of artisanal crude refineries, reduce health hazards and protect Nigeria’s environment.
He further emphasised that a modular system is required at this time and would have to be demonstrated at pilot scale in different locations.
Responding, the representatives of the US Consulate Commercial Department applauded the Minister’s business visit considering the current level of eagerness to get much done within the shortest time possible.
Senior Commercial Specialist of the US Consulate Commercial Department, Ms Ngozi Nkwo, assured the Minster of State, that the US Mission in Nigeria wholly supports
the initiative and promises to match the speed of the Government of Nigeria on the project
rating
Fitch Ratings has assigned Dangote Industries Ltd’s (DIL) senior unsecured notes - issued
by DIL’s SPV, Dangote Industries Funding
Plc - a final National Rating of ‘AA(nga)’. Fitch has also affirmed DIL’s National Long-Term Rating of ‘AA(nga)’ with Stable Outlook.
The notes are issued under DIL’s existing national bond programme of NGN300 billion, comprising tranche A and B amounting
to NGN10.47 billion and NGN177.12
billion with seven- and 10-year maturities, respectively. The tranches were issued on the Nigerian local bond market with semi-annual coupons of 12.75% (A) and 13.5% (B).
The bonds’ final terms are in line with Fitch’s base-case assumptions. The proceeds are being used to part-finance the completion of DIL’s refinery and petrochemical plants. Dangote Oil Refining Company Ltd (DORC) and Dangote Fertiliser Ltd (DFL), DIL’s subsidiaries, are co-obligors under the bond programme.
DIL is a diversified conglomerate in Nigeria with a leading share in the cement business and a future key operator in the petrochemical industry through its fertiliser and oil refinery business. Its strategy is to gradually establish a downstream industry in Nigeria and be the largest urea producer in Nigeria. It also aims to make Nigeria a net exporter of refined petroleum products and petrochemicals by 2026.
FITCH
A member of the Energy Committee of the Islamic Assembly considered the construction of ‘petro-refineries’ (condensate refineries)
as one of the defence tools to fight the sanctions, and said: “Directing liquidity towards production is achieved by investing in national economic projects.”
Speaking to Shana, Hadi Beiginejad stated that construction of refineries and petro-refineries is a very good defence tool to fight against sanctions, and said: “Refinery construction leads to the development of downstream industries and production
of petrochemical products and helps to strengthen hard currency resources.”
Pointing out that construction of oil and gas projects, especially petro-refineries,
is profitable and has a good return on investment, he added: “Construction of refineries and petro-refineries, preventing the sale of crude oil, turning it into valuable products, creating economic value for the country, employment, neutralising sanctions will result in an increase in hard currency income, reaching customer diversity, etc.”
This member of the Energy Committee of the Islamic Assembly stated: “In addition to its advantages, the establishment of petro- refineries also facilitates the entry of the private sector into the refining industry.” SHANA
Ikoh visits US consulate to discuss modular refineries
The Honourable Minister of Ministry of
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