Dangote to set up oil trading desk for refinery operations

Dangote Group Executive Director Devakumar Edwin said during an interview at his office in Lagos that Dangote is setting up its own trading desk, with a senior team of three people and a staff of roughly 30 who will monitor international commodity prices.

“We are setting up a complete trading desk here with us. In the next three months the full desk will be set up,” he said.

Giuseppe Surace, the refinery’s chief operations officer, said the refinery’s tank farms will be finished this year and could be used as a warm-up for operations.

The tanks will be connected to five “single point mooring buoys” (SPMs), which will allow the refinery complex to pump crude straight into tanks from large ships at sea and pump products back out onto boats of any size.

The SPMs will be the primary method of supplying oil products from the refinery, Surace said, adding that the team were considering using the tanks as training or as a depot before the refinery’s production starts.

“We might do that. We will be ready to do that,” he said, though he added that no decision had been taken yet.

The team is in talks with NNPC, two other international oil companies and two large oil traders, all of whom are interested in supplying crude and buying products, Edwin said.

Edwin said the crude unit for the refinery, which set sail from China last month, would arrive by the end of October.

The trains at a fertilizer plant on the same site will start up by the end of this year, the executives said.

 

Source: Reuters

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