I can't believe I am the first to put this on here.
Or are all the usual anti-enterprises suspects sleeping? Or maybe they just wait for somebody to put up a topic and then try to tear it up?

Anyways, I was just thinking what the future might hold in Nigeria with these developments.
Are there precedences in other countries (Russian Oligarchs and tiny in Mexico) ?
Please only PROACTIVE discuss please.
I know already that they are all thieves and it is a coverup for OBJ etc and all you ppls other unhelpful arguments.

I want to know where the opportunities are so we can start early to exploit them.


May 28th, 2007
Dangote, Otedola acquire Kaduna Refinery
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The Bureau of Public Enterprises (BPE) yesterday formally handed over both Port-Harcourt Refinery and Kaduna Refinery and Petrochemical Company (KRPC) to Bluestar Oil services to break the jinx over the sale of the refineries since 2003.
Kaduna Refinery was sold to Bluestar for $160-million (N20.5-billion), an increase of $58-million (N7.4-billion) over the offer of China National Petroleum Corporation (CNPC).

The sale of Kaduna Refinery concluded at the weekend brought to two the number of mega-enterprises sold to Bluestar Oil services, a consortium promoted by Aliko Dangote, Femi Otedola and Transcorp plc.

The sale was among the last-minute approvals of the National Council on Privatisation (NCP) at the twilight of the Obasanjo administration.

The CNPC offered $102-million (N13-billion) for 51 percent of the Kaduna Refinery at the financial bidding about a fortnight ago, but the BPE said the offer was below the reserved price of the enterprise.

Irene Chigbue, director-general, BPE, confirmed the sale of Kaduna Refinery at the handing over of the enterprises and five others in Abuja yesterday.

Other enterprises handed over by the BPE include Izom Bricks and Clay Products to Continental Project and Supplies Company Ltd, Onigbolo Cement to Dangote Industries, and Steyr Nigeria Ltd, Bauchi to Scintilla Prime Investments Ltd.

Others are Ihechiowa Oil Palm, Abia State to Omen International Ltd and Anammco Enugu to G.U Okeke and sons.

"Blue Star Oil Services Consortium also took up the challenge of buying into the KPRC with an offer price of $160-million for 51 percent equity; an amount exceeding the $102-million (N13-billion) revised offer by China National Petroleum Corporation.

"The Consortium has already paid the full financial consideration for KPRC. Let me also emphasise that Bluestar Oil Services Consortium is bound by the conditions of sale, especially with respect to the time period mutually agreed for the rehabilitation and activation of KRPC. This, of course, is in addition to other requirements that have been negotiated by both parties for both refineries."

At the handing over, she said the journey had been on for sometime, adding that both transactions were complex because of the emotional attachments of Nigerians to them.

"China was given oil bloc as incentive because of the difficulty in the Kaduna Refinery, which is mainly its location with no access to water and port facilities as well as vandalisation.

" China brought poor financial bid which we presented to the government and when Bluestar came forward with a bid offer of $160-million, we equally sent it to the government and it was approved to operate the Kaduna Refinery.

"Government was persuaded to sell to Bluestar because of the initial concept of integrating both refineries for synergy.

"We have to let our Chinese investors know the huge funds required to keep the refineries in good shape and so we could not just leave it like that to continue to be in their present states," Chigbue added.

She said promoters of Bluestar had assured that they would in no distant time turn the refineries around so that they would be attractive should government decide to sell its remaining 49 percent in the two refineries.

It would be recalled that as part of the bilateral cooperation with the Republic of China, President Obasanjo had directed the setting up the Technical Working Team under the Office of the Presidential Adviser on Petroleum & Energy (now Ministry of Energy) to review the investment proposal submitted by China National Petroleum Corporation (CNPC) for Kaduna refinery

Following review of CNPC’s proposals and identification of possible areas of cooperation, the president granted approval to enter into negotiation of technical and commercial terms of the integrated package with the CNPC in respect of oil blocs indicated by the CNPC and core investor ownership of the KRPC.

The president also approved that the transaction should be opened up to other prospective investors to enhance competitiveness of the process. The BPE engaged Credit Suisse First Boston (CSFB) to advise goverment on the core investor sale of the KRPC to the CNPC as part of an integrated investment package covering upstream and downstream assets, in line with the strategic co-operation between Nigeria and the Republic of China.

A Web-based data room was activated and access granted to prospective bidders after signing of non-disclosure agreement with them. They conducted site visits in December 2005 and January 2006. In June 2006, bidding documents (including information memorandum and draft Share Purchase Agreements) were circulated to prospective bidders. But none of the other bidders (PII of India and Essar of India) submitted bids.

The CNPC conducted a detailed due diligence on the KRPC between October 17 and November 4 2006, prior to submission of bid for KRPC. At the bids opening on May 17, 2007, it offered to pay a revised offer price of $102-million, which was below the reserve price.

Consideration of Dangote for the refinery, which only the Chinese bidded for as at when the financial bid was conducted, might have been in furtherance of the right of refusal granted him by the presidency.

President Obasanjo had granted Dangote right of refusal in the sale of three major government projects. They are the refineries, an energy project, and a fertiser plant.

Dangote has 55 percent controlling shares in Bluestar; Zennon Oil holds 25 percent; Rivers State has 15 percent, and Transcorp, the remaining 5 percent. Under the privatisation programme of the outgoing administration, Dangote seems to be favoured, having acquired several mega enterprises.

Some of the state enterprises acquired by Dangote under the Obasanjo administration are Benue Cement Company plc, Gboko, Markurdi, Onigbolo Cement, Obajana Cement, Save Sugar, and Bacita Sugar.

i agree with you the way they rushed to sell kaduna on the last day of the administration was shocking i hope yar adua
will do something about this they cant buy nigeria like that it is not right this thing belongs to all of us

Was not aware they bought KDR too