NEWS
JUST IN: Dangote Refinery Moves To Double Output, Partners With US Firm Honeywell
In a major step towards transforming Nigeria into a global energy powerhouse, the Dangote Petroleum Refinery has announced a strategic partnership with Honeywell International Inc., a US-based Fortune 100 company.
The deal is aimed at expanding the refinery’s capacity to 1.4 million barrels per day (bpd) by 2028, potentially making it the largest single-location refining complex in the world.
The announcement was contained in a statement released on Tuesday, just one month after the refinery disclosed its expansion plans.
SEE ALSO: NNPC Records Remarkable 2024 Performance, Analyst Says Company Is “Flying Higher”
According to the management, Honeywell will provide advanced technology, catalysts, and specialised equipment that will allow the refinery to process more crude oil grades and enhance product quality.
The statement read in part, “Dangote Group is pleased to announce that it has entered a strategic partnership with Honeywell International Inc to support the next phase of expansion of the Dangote Petroleum Refinery.
“This collaboration will provide advanced technology and services that will enable the refinery to increase its processing capacity to 1.4 million barrels per day by 2028, marking a major milestone in our long-term vision to build the world’s largest petroleum refining complex.”
Petrochemical Expansion Also Included
As part of the agreement, Dangote will deploy Honeywell UOP’s Oleflex technology to increase its polypropylene production to 2.4 million metric tonnes annually — a move expected to strengthen Nigeria’s role in the global petrochemicals market.
“As part of the wider collaboration, we are scaling our polypropylene capacity to 2.4 million metric tons annually using Honeywell’s Oleflex technology.”
Although the exact figures were not publicly disclosed, an insider told Reuters that the deal could exceed $250 million, depending on the project’s final configuration.
Fertiliser Output Set to Triple
Dangote Group also confirmed progress in its fertiliser expansion, aiming to raise production from 3 million metric tonnes to 9 million metric tonnes per year.
“The existing plant consists of two trains of 1.5 million metric tons each. The expansion will add four additional trains to meet growing demand for high-quality fertiliser across Africa and global markets.”
A Solution to Nigeria’s Longstanding Fuel Dependence
Nigeria remains Africa’s top crude oil producer but has relied heavily on imported refined fuel for decades due to failed state-owned refineries in Port Harcourt, Warri, and Kaduna.
The $20 billion Dangote Refinery, located in the Lekki Free Zone, Lagos, was built to address this challenge.
Business magnate Aliko Dangote earlier emphasised his vision for the facility, stating, “Our expansion vision is simple, position Nigeria as a global refining powerhouse. We want to create an energy complex capable of meeting Africa’s needs while competing with the best globally.”
Strategic Timing for Honeywell
The deal comes as Honeywell is restructuring and preparing to spin off its aerospace division.
The partnership with Dangote is seen as part of its broader move to expand into high-growth energy and petrochemical markets.
Industry experts believe this development signals a shift from construction into large-scale operational growth. The refinery, once fully expanded, could process nearly all of Nigeria’s current crude output estimated at 1.5 million bpd.
The statement concluded by reaffirming the group’s commitment, “Dangote Group remains fully committed to delivering world-class industrial capacity, strengthening Nigeria’s energy security, and driving sustainable economic growth through long-term investment, innovation, and strategic global partnerships.”
NEWS
NUPRC Sets Revocation Date for Undeveloped Oil Licences
Licensed Oil and gas operators now have until October 31 to demonstrate compliance with their licence obligations or risk losing their acreages.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, made the disclosure at an energy conference organised by the Harvard Business School Association of Nigeria in Lagos on Friday.
She cautioned that the regulator would enforce the drill-or-drop provisions of the Petroleum Industry Act (PIA) against operators that failed to develop their assets.
“Now the PIA has instituted the drill-or-drop mechanism. So, before you take the block, you know whether it’s a gas asset, you know whether it’s an oil and gas asset, and you must come up with concrete plans to unlock your resources,” Eyesan said.
READ ALSO: FG Lacks Capacity to Meet Dangote Refinery Crude Demand
She said the commission had issued a circular directing affected operators to respond before the deadline, warning that those who failed to do so would face regulatory action.
“And as a matter of fact, we’ve issued a circular, and we say by 31st of this month, for those who are not responsive, you can be rest assured that I am coming after you,” she threatened.
Eyesan also explained that operators holding onshore assets were expected to undertake the required work within the stipulated three-year period, warning that the commission would call up assets where companies failed to develop their acreages.
“For those onshore, you have three years. Within three years in the first instance, if you do nothing about those assets, we will call it up,” she said.
The commission’s warning comes as it moves to enforce work commitments attached to licences awarded through recent licensing exercises, with affected operators required to explain delays in executing their approved work programmes and show how they intend to address the challenges.
NEWS
Heritage Energy on Ways of Unlocking Oil Industry Investment
Strategy for unlocking Nigeria’s oil industry investment must focus on access to capital, technology, markets and regulatory certainty, in addition to physical assets.
These views were shared by the Heritage Energy Operational Services Limited (HEOSL) in a goodwill message at the Association of Energy Correspondents (NAEC) Energy Energy Conference 2026, in Lagos, themed: “Access to Assets: Empowering Players and Driving Growth.”
Delivering the message on behalf of the CEO, Ado Oseragbaje, General Manager, Government, Joint Venture & External Relations, Heritage Energy, Ohioze Unuigbe, commended the NAEC for convening what he described as a strategic platform for dialogue on issues shaping Nigeria’s energy sector.
READ ALSO: NCDMB, Renaissance Empower 60 with Oil & Gas Technical Skills
According to him, the conference theme is both timely and strategic at a period when the industry is seeking to increase production and attract investment.
“Access to assets must go beyond physical access to oil and gas resources. It must also include access to capital, infrastructure, technology, markets, skilled talent, regulatory certainty and strong partnerships. These are essential to unlocking investment, increasing production and strengthening Nigeria’s energy security,” he said.
Unuigbe noted that while access to an asset is critical, real value is created by how effectively, safely and responsibly the asset is operated.
He disclosed that Heritage Energy’s Operational Management System (OMS) provides the discipline for responsible operations, by bringing together People, Plans, Processes and Performance to embed operational excellence, strengthen accountability and manage risk.
This, he said, is particularly important in a complex environment such as OML 30, where sustainable performance depends on effective collaboration among staff, partners, regulators, host communities and other stakeholders.
He stressed that sustainable value creation goes beyond production to include safety, environmental stewardship, responsible asset management, local capacity development and meaningful host community engagement, alongside investment in infrastructure, technology and Nigeria’s gas resources.
“No operator can achieve this alone. Government, regulators, investors, operators, partners, host communities and the media all have important roles to play. Trust, transparency and constructive engagement must remain at the heart of these relationships,” he added.
The Heritage Energy GM also lauded the role of the energy media in promoting informed discourse, transparency and accountability, calling for continued collaboration to support accurate and balanced reporting.
“Nigeria’s energy opportunity is significant. Our collective task is to ensure that access to assets translates into access to opportunity, value creation and sustainable growth,” Unuigbe stated.
He reaffirmed Heritage Energy’s commitment to responsible operations, operational excellence and stakeholder collaboration in building a stronger and more sustainable Nigerian energy industry.
NEWS
Fuel Discount: Presidency Explains Why Atiku’s Production Subsidy Proposal May Fail
The Presidency has explained why former Vice President Atiku Abubakar’s proposed production subsidy for locally refined petrol could be difficult to implement, arguing that Nigeria lacks sufficient freely available crude oil to sustain the policy.
President Bola Tinubu’s Special Adviser on Media and Public Communications, Sunday Dare, made the position known in a statement issued on Sunday, October 11, 2026, titled “Atiku’s Demagoguery in the Face of Tinubu’s Logical Policies.”
Dare was responding to Atiku’s criticism of the Federal Government’s 30-day petrol discount offered through the Nigerian National Petroleum Company Limited (NNPC) Retail and its proposed fuel price modulation framework.
SEE ALSO: PETROAN Expects Fuel Discount to Combat Inflation
Atiku had described the temporary discount as a publicity stunt, questioning its sustainability and accusing Tinubu of adopting his economic proposal without incorporating the production subsidy he advocated.
However, the presidential aide argued that Atiku’s proposal failed to adequately account for Nigeria’s crude oil production arrangements, existing contractual obligations and the financial implications of subsidising petroleum products.
According to Dare, Nigeria produces approximately 1.8 million barrels of crude oil daily, but the Federal Government does not have unrestricted access to the entire volume.
He said joint ventures and production-sharing contracts, alongside production costs, royalties and profit-sharing arrangements, significantly reduce the quantity of crude available to the state.
“After accounting for these statutory and contractual obligations, Nigeria has fewer than 700,000 barrels per day of unencumbered ‘free crude’ to give away,” Dare stated.
He argued that using crude oil to fund a broad production subsidy without sufficient freely available supplies could undermine government revenues and expose the country to financial risks.
Dare maintained that domestic refineries, including the Dangote Petroleum Refinery, require substantial volumes of crude oil, making it difficult for the government to meet their needs solely from crude available for unrestricted allocation.
He argued that domestic refiners would still need to obtain additional crude through other arrangements, including purchases from international markets.
The presidential aide warned that a production subsidy without adequate crude supplies and clearly defined financial safeguards could recreate some of the problems associated with Nigeria’s former petrol subsidy regime.
He said such a policy could encourage opaque transactions, fraudulent claims and financial losses if its implementation was not properly structured.
Atiku has advocated shifting government support away from subsidising imported petrol towards supporting qualifying domestic refiners through preferential crude oil pricing, with the aim of reducing costs for consumers.
The proposal has become a subject of political and economic debate as Nigerians continue to grapple with high petrol prices and the wider cost-of-living crisis.
Presidency Defends 30-Day Petrol Discount
Dare also rejected the suggestion that NNPC Retail’s decision to forgo its profit margin temporarily amounted to a restoration of the former petrol subsidy.
He said the discount was initially introduced as part of activities marking Nigeria’s 66th Independence anniversary before being extended for another 30 days.
According to him, the arrangement allows NNPC Retail to absorb short-term market pressures without reinstating the previous system of government-funded fuel subsidies.
The presidential aide also defended the proposed N1,350-per-litre ceiling on ex-gantry costs, describing it as a mechanism to moderate sudden increases in fuel prices.
Under the framework outlined in the statement, refiners and importers would absorb temporary cost increases above the ceiling and recover those costs when market conditions improve.
Dare argued that the measure could help reduce the impact of abrupt fuel price changes on transport fares and household expenses.
The presidential aide further defended the administration’s broader economic reforms, including petrol subsidy removal and foreign exchange market reforms introduced in 2023.
He cited the expansion of compressed natural gas infrastructure, direct cash transfers to vulnerable households, support for small businesses and increased federal allocations to states and local governments as part of the government’s response to economic pressures.
Dare maintained that the administration was pursuing a combination of market-based pricing and targeted interventions to manage the effects of international oil market volatility.
He argued that the country needed structural economic measures rather than temporary interventions that could place additional pressure on public finances.






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