Dangote to ink Nigerian refinery contract with EIL

Vol 17, PW 15 (13 Mar 14) People & Policy

Africa's richest man and the chairman of the Dangote Group, Aliko Dangote, is expected in Delhi next week to sign a $139m (Rs850cr) contract with Engineers India (EIL).

Dangote wants EIL to provide project management consultancy and EPC and management (EPCM) services for a proposed 20m t/y ‘greenfield’ refinery and petrochemicals complex in Nigeria's southern Ondo state. “EIL was lowest bidder last September but the contract is not yet signed as the new petrochemical company is not registered,” says an EIL source.

“Dangote was expected in India on March 12 but now he is coming next week.” Some industry sources wonder if the contract is going ahead but they needn't fear - EIL received a token payment of Rs11cr ($1.8m) from Dangote in February, the same month a team of five EIL engineers went to Nigeria for an on-site visit.

EIL has simultaneously begun preparing tender documents for a land survey, including topographical and geotechnical data. “We’ve also begun working on the process technology package based on African crude sources,” adds EIL.

“Tenders will be floated the moment our contract is signed.” EIL is short-listing companies to supply critical equipment such as high pressure/high temperature reactors like hydrocrackers, and Diesel Hydrotreating (DHDT) and Diesel Hydrodesulfurization (DHDS) reactors for ‘clean fuel’ projects.

Dangote wants the $9bn refinery completed by end-2016.

LNG Summit