Dangote Group has awarded the project management consultancy (PMC) and engineering, procurement and construction management (EPCM) contract for implementing a grassroots 400,000 bpd (20 million tonnes) oil refinery and 600,000 tonnes polypropylene plant, EIL said in a statement.
The contract, worth $139 million (N22bn), according to an online newspaper, Hindu Business Line, is “the largest ever single consultancy assignment for EIL”.
A spokesman of Dangote Group, who pleaded anonymity, confirmed to Daily Trust yesterday that the company awarded the refinery contract to an Indian firm.
In September, business mogul and Africa’s wealthiest man Aliko Dangote signed a $3.3billion deal with some local and foreign banks to finance the building of an oil refinery in the south west of the country.
The refinery would be the largest in Africa, from where most Nigerian crude oil would BE export outside its shore, he had told reporters in Abuja after signing the deal with the banks.
“At least for the first time in our lifetime, we‘ll see Nigeria exporting petroleum products,” Mr Dangote had said.
“We’ll also see Nigeria for the first time exporting fertilizer rather than using hard earned foreign exchange to import fertilizer,” he added.
The entire venture would cost $9bn, with $3bn in equity from Dangote Industries and $6bn to be raised in loan capital, and is expected to be completed in 2016.
The initial loan facility was coordinated globally by Standard Chartered and in Nigeria by Guaranty Trust Bank.
EIL will render PMC, including EPCM and commissioning services for the project.
The main facilities of the project comprise crude distillation unit, single train residue fluid catalytic cracking unit, diesel hydrotreating unit, CCR unit, alkylation unit, polypropylene unit etc, utilities and offsites, including captive power with other enabling infrastructure facilities.
Crude and product handing facilities through single point mooring (SPM) would also be integrated with the refinery, the statement said.
EIL is India’s engineering, procurement, construction and total solutions consultancy organisation in the field of petroleum refining, petrochemicals, pipelines, oil and gas terminals and storages, fertilizers, mining and metallurgy and infrastructure projects.