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Dangote and his refinery...
Nigeria’s Dangote Group said a Kenyan court ruling on a land rights claim would not halt the groundbreaking ceremony for its planned 700,000-barrel-per-day (bpd) oil refinery in Lamu on Wednesday, but that it may affect some site activities.
The Malindi Environment and Land Court order said that the “status quo prevailing” on the land should be maintained until a hearing on October 14.
The court order was dated September 25 but only made public on Monday.
The lawsuit was filed by 133 residents of Chandavai, an area in Lamu County, who say the land where the refinery will be built is their ancestral heritage and that their families have lived and farmed there for generations.
Dangote Group, the business conglomerate owned by Africa’s richest man Aliko Dangote, said in a statement:
“The court has not halted the groundbreaking ceremony of the refinery at this stage. However, activities at the site may be affected by the ruling as both parties are required not to carry activities until the case is heard on 14th October.”
The Lamu refinery on Kenya’s coast aims to replicate the success of Dangote’s 700,000 bpd plant near Lagos, Nigeria’s commercial capital. The Lagos plant helped turn Nigeria from a major fuel importer into a growing exporter.
But unlike Nigeria, Sub-Saharan Africa’s biggest oil producer, Kenya currently has no commercial oil output.
Dangote has said he expects the Lamu refinery to cost $15 billion to $16 billion and hopes to complete it by 2030.
Earlier this month, Dangote kicked off Africa’s biggest-ever share sale with an Initial Public Offering of the Lagos refinery.
REUTERS
