PehaKaso: Pls I'm new here & I need answers. Where will d oil 2 b refined in Dangote's refinery come 4rm? Will d oil flow 4rm Kwankwaso's state?

omonnakoda: Did you think the Refiner was going to get the oil free They would have topay the market price which is similar around the world
oil can come from anywhere. Where is the oil Nigeria produces today being refined? Where is Iraq's oil refined? Where is Saudi's oil refined or Russia's or Venezuela's . Most of the Leading refining countries un the World like China Japan etc import most of it . We can get oil from Ghana,Angola,Libya or Saudi so there is no issue there .There are many sources of oil. Nigeria's oil will not last forever anyway

igbo boy: I just hope when Nigeria breaks up that fani kayode in the name of yorooba supremacy will not seize dangote's refinery o...

omonnakoda:
I know say that "illiterate jibe" touch you for bad place .my papa must Go school abeg

lygn19: Dangote go and learn to stand on ur own,,,stop leaning on the shoulders of d FG'''

Dpeacemaker101: And you who are leaning on, is the FG complaining? You are so uncivilized, you should go back to your village.

ghananotnaija: I just wonder how did Dangote manage to win over the fuel importation cartel? Knowing Nigerians, I suspect he is just using this as a ploy to loot Nigeria even further.

If Nigeria really wants to stop import petro, then they should turnover the oil operations to Ghanaian firms.

taharqa: But seriously, away from d roforofo fights and side talks, this is a reali HUGE deal in deed. This should be, by far, d LARGEST Investment ever made in this nation history (outside d Oil Sector)- over $9billion; and, that it is actuali been made by an Indigenious Nigerian Cop and its finance/capital outlay overseen by a Cotorie of Banks led by Nigerian Banks, is an Outstanding testament to how far we as individuals Nigerians and Nigerian have come, and perhaps more importantly, how much farther we can go. This should be such a source of pride for EVERY Nigerian, regardless of our present persuasions. Of course, it is more exciting that this is happening in d Refining, Petrochemical and Fertilizer Sectors.... Great stuff

ghananotnaija: I just wonder how did Dangote manage to win over the fuel importation cartel? Knowing Nigerians, I suspect he is just using this as a ploy to loot Nigeria even further.

If Nigeria really wants to stop import petro, then they should turnover the oil operations to Ghanaian firms.

plaindealer: lmao @ foolish and attache essay from abati.com.


These unless comedians fit kill pesin with lafta I swear...

Majoo: I really love this man called Aliko Dangote for all his company establishment every where creating employment for his nigeria citizens BUT NIGERIANS WORKING IN ALL DANGOTE COMPANIES ARE SLAVERY ONLY THE INDIANS THAT NOTHING IN THEIR OWN COUNTRY WITH TRADE TEST CERTIFICATE SUPERVISE NIGERIAN MASTER DEGREE CERTIFICATES, INDIANS ARE TOO MANY FG SHOULD VERIFIED[/font][img][/img]

DaLover:

My guess is that Dangote is already positioning himself for the full deregulation of the petroleum downstream sector, which must happen any way, when that happens,
Petroleum product importers will not be entitled to any payments from government, they will have to compete against the likes of Dangote and orient refineries, and probably the existing refineries which would have been privatized.

On the long run, it should be better to refine locally, ultimately the main goal should be movement away from exporting raw crude...just imagin 10 such refineries operating in the country, the possibilities, fresh air man, fresh air....
Add the liberalization of the power sector, the opportunities become limitless, ...scented fresh air indeed

Lordave: Dangote didn't create you, certainly your creator has assigned Dangote to carter for your needs

omonnakoda: Oil is available on the international market.It is a commodity with little variation in price.You do not need a LOCAL source of oil.The World's biggest refinery is in India number 3 and 4 are in Korea and number 5 is in Singapore.
Are these major oil producing nations?
Dangote does not need a single drop of oil from Nigeria
Even if he got oil from Nigeria our reserves will run out one day then what?

joseph1832: All I ever seem to hear these people talk about is more jobs, more jobs and more jobs and the reality of it all is that these jobs are given to those who know one or two people in key sectors in the economy while the common sits in his house jobless!.

Nepotism at its peak!

jp philips:


do you ask yourself some pertinent questions? India with the biggest refining capacity of 1.2mbbls/d imports 79% of their crude just as you are advising dangote,
the resultant effect is that one liter of petrol in Mumbai with the biggest refining capacity in the world is selling for Rs81.57 equivalent of 203.78naira.
is that what you wish for Nigeria? the problem is not your refining capacity but the source of your oil, if you import your crude, you need to subsidize it to make it affordable because it doesnt come cheap in the open market,which will increase government spending and will result to inflation and budget deficit,
if you deregulate, your economy will be in trouble cos of inflation and high cost of living.

this argument has been won and lost severally on nairaland here all you need do is a little research and you will understand where i am coming from.

lastly, as soon as oil prices on the international scene soars, India runs into shortages and the refineries go on leave, as we speak, portharcourt refinery is on leave for the past 2 months, reason, "CRUDE SHORTAGE".

Orient is going to be the next big thing in the downstream sector because chief Emeka Anyaoku has already applied this theory of mine.

omonnakoda:
You have no logic in your output.None Whatsoever
Why must petrol retail at the same price as in India. Is India the only country that imports oil.Does petrol cost the same as in India as in ALL oil importers. Please !!
What is more important is that Nigerians can afford to pay for petrol WHATEVER it sells for in Nigeria. That depends on so many variables which you obviously do not understand. I remember when petrol sold for less than ONE Naira
The subsidy argument is a useful one to have and I am prepared to have it. but I do not think that is what this thread is about and you are getting ahead of yourself. I so far have NOT expressed a view about subsidy as far as I can remember but whether or not there is subsidy is irrelevant to this thread and to refiners so I am not sure what your point is. There still has to be a BUDGET for subsidy and it must be paid for the money must come from somewhere. The oil being produced is NOT without owner whether in contract with the oil company or by constitution. Government cannot just take the oil. Mobil,Shell etc already own oil under the ground and must be paid for their share at FULL PRICE.
So even if Dangote was importing oil and there is a subsidy policy he would still have to be PAID the subsidy so stop talking about what you clearly do not understand.
Has anyone told you Nigeria's oil will last for ever. One day you will have to start buying oil anyway

Revolva: Dangote is a very wise man inDeeD wiser than the oga at the toppest...jona jona...well he took 2 billion naira loan but he needed 8 billion ...i dont think any nigerian bank will lend out 8 billion .....unless he goes from banks to banks to collect 2billion from each...

Tolexander:


So after sleeping overnight in my house built with dangote cement with the room flitted with dangote petrochemicals to kill the mosquitoes, i will still need waking up in the morning to boil my water for tea which has dangote sugar with dangote gas, and cook my dangote shaggetti also with dangote kerosene.
Drive to my working place with my car running on dangote petrol. Only to gat to work and realised there is no PHCN light then thinking of how to run our generator on Dangote diesel.
Even about 5% of the air breathe in will be dangote from the combustion of his fuels from automobiles and generators to the atmosphere likewise the air breathe out will be dangote from the catabolism of the sugar, spaghetti indomine and vegetables fertilized by the dangote's fertilizer i eat everyday.
Applied for dangote truck driving school, but wasn't admitted but still putting my hope on the post of the dangote group company financial manager i recently applied for.

Shey na Dangote create me ni!

jp philips:



I have educated you severally on this same issue but it seems you made a pact with ignorance, i will not even try this time, we know what dangote is doing.
you mentioned orient, don't you know that Orient's source of oil is OPL915 and 916? it is senseless to set up a refinery business in Nigeria without a source of oil, the JV oil cant support that, so the right question is; where is dangote getting his oil from?
Jonathan may have secretly allocated him an oil block and that is what he is thanking him for ala the favorable policies he mentioned in the article.
you look at the oil industry from the surface but your knowledge is too limited to see how things work in the industry.

your post in bold speaks volume of the height of your ignorance, as we speak, DPK and AGO has been deregulated, do you think the marketers and importers viz a viz Nupeng are complaining? are they striking? you know why? because they are making serious money at the detriment of your pocket.

that DPK you buy 150naira a litre has about 60% profit margin for both the importer and the marketer so they have absolutely nothing to lose,
talking about Govt payment, i laugh seriously at you, even the Aquilla that the Govt is paying as subsidy for transportation, not even all of them have the time to go through the rigorous process to collect it, if the importer sells a loaded product for you, he will charge you for the truck aquilla or not, the end user is the one suffering.

If orient comes upstream, the same importers will celebrate, all they need to do is to register as major distributors end of story, they have nothing to lose,they will save a lot of money on import charges and haulage fees, they will buy cheap from orient and cut your throat at the pump because you have removed the only Govt influence that keep them on their toes via deregulation.

let me make it clear for the umpteenth time, subsidy or not, importers are chopping seriously, if you deregulate, they chop more while you pay more.

I have read a lot of your oil and gas arguments and i tell you what, you are the most delusional person i know who make comments here, you are better off in the romance section.

jp philips:


do you ask yourself some pertinent questions? India with the biggest refining capacity of 1.2mbbls/d imports 79% of their crude just as you are advising dangote,
the resultant effect is that one liter of petrol in Mumbai with the biggest refining capacity in the world is selling for Rs81.57 equivalent of 203.78naira.
is that what you wish for Nigeria? the problem is not your refining capacity but the source of your oil, if you import your crude, you need to subsidize it to make it affordable because it doesnt come cheap in the open market,which will increase government spending and will result to inflation and budget deficit,
if you deregulate, your economy will be in trouble cos of inflation and high cost of living.

this argument has been won and lost severally on nairaland here all you need do is a little research and you will understand where i am coming from.

lastly, as soon as oil prices on the international scene soars, India runs into shortages and the refineries go on leave, as we speak, portharcourt refinery is on leave for the past 2 months, reason, "CRUDE SHORTAGE".

Orient is going to be the next big thing in the downstream sector because chief Emeka Anyaoku has already applied this theory of mine.

DaLover:


Ol boy, wetin be ur own self?
I am honestly not understanding ur very smart logic..let break it down mathematically
Lets use assumed figures
1-cost of producing a barrel of crude=$25
2-international cost of a barrel of crude=$100
3-cost of transporting a barrel of crude to Europe for instance=$2
4-cost of transporting a barrel of crude locally=$1
5-cost of refining a barrel of crude=$5



For the importer without subsidy payment, plus import duties, plus punitive protection tax, we have
$100+(2x$2)+$1+$5 or $110
Hence the landing cost for an importer on a barrel of oil equivalent would be $110, this could go up much further if he government decides to apply protection tax for local refineries and import duties


For the local refiner/producer, his cost should be
$100+$1+$5 or $106,

Hence the local producers output of crude should be cheaper,

Please kindly add other factors that I missed, so I can understand you properly.