Amanze Chinonye
Dangote Industries Limited has expanded its in-house construction fleet to about 6,500 machines with the acquisition of 4,000 additional units as it seeks to accelerate the expansion of its Lekki refinery to 1.4 million barrels per day.
Join our WhatsApp Channel
Devakumar Edwin, Group Vice President for Oil, Gas and Fertiliser, said the equipment would support the refinery expansion, which has a 2029 target but which the company wants to complete sooner.
READ ALSO :
Dangote Refinery Surpasses Nameplate Capacity, Hits 700,000 Barrels Daily
Edwin made the disclosure to newspaper editors touring the refinery in Ibeju-Lekki on Friday, Sept. 11, explaining that Dangote had opted to build its own construction capacity rather than rely entirely on foreign contractors.
The group initially acquired 2,563 pieces of construction equipment after some contractors indicated they lacked the capacity to execute parts of the refinery project, Edwin said. It subsequently expanded its machinery fleet and developed in-house project-management and engineering capabilities.
Edwin said the approach enabled Dangote to avoid an estimated $2.5 billion in contractor fees. International contractors had quoted fees of about 12.5% of an estimated $19.5 billion project cost for engineering, design and supervision, he said.
The $2.5 billion represents Dangote’s estimate of fees that would have been payable under the external-contractor model and is not an independently audited measure of savings.
Dangote Projects Limited handles detailed engineering, procurement and project management, while external contractors are engaged for selected construction packages. The group has also developed supporting infrastructure, including a granite quarry, 82 concrete batching plants, 203 transit mixers and a private port.
The Lekki refinery was designed to process 650,000 bpd and is currently operating at about 700,000 bpd, according to Edwin. The planned expansion would more than double the refinery’s original design capacity.
READ MORE :
Dangote is also pursuing a planned 700,000-bpd refinery in Kenya. If completed alongside the Lekki expansion, the two facilities would give the group planned refining capacity of about 2.1 million bpd.
The expansion of the machinery fleet is part of Dangote’s broader strategy to retain greater control over the execution of large industrial projects while increasing its capacity to undertake construction work without relying entirely on external contractors.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
