Billionaire businessman Aliko Dangote has revealed that Honeywell UOP will earn a commission on every barrel of crude processed at his planned 700,000-barrel-per-day refinery in Lamu.
Dangote made the disclosure on Wednesday, September 30, during the groundbreaking ceremony for the Sh2.2 trillion refinery, which was attended by President William Ruto and several African leaders.
During his speech, Dangote singled out Dr Rajesh Gattupalli, president of Honeywell UOP, who was present at the ceremony, and acknowledged the company’s role in providing the technology for the project.
“The company that sold the technology of building this refinery is UOP, and I’m sure the MD is here. Dr Rajesh, can you stand so that you can be recognised?” Dangote said.
He then explained that under the financial arrangement, UOP will earn a commission on every barrel processed.
“We bought the technology from him. So for every barrel we process, he collects a commission,” Dangote said.
Honeywell UOP, an American multi-national company provides process technology, licensing, equipment and related services to the refining, petrochemical and gas-processing industries.
Refinery expected to reshape Kenya’s economy
The Lamu refinery is expected to take about 40 months to complete and will have a processing capacity of 700,000 barrels of crude oil per day, putting it among the largest refinery projects in Africa.
Beyond supplying petrol, diesel and other petroleum products, the refinery is expected to create a wider economic ecosystem covering energy, transport, manufacturing and trade.
With a capacity of 700,000 barrels per day, the project is set to become the largest industrial development in East Africa by processing capacity and one of Dangote’s biggest investments outside Nigeria.
Dangote said construction of the refinery could generate up to 60,000 jobs at its peak, creating opportunities not only within the project but also across businesses supplying goods and services to the development.
The scale of the refinery is also expected to strengthen Lamu’s position as an important energy and logistics hub, potentially increasing demand for transport, storage, engineering, construction, manufacturing and other support services.
The project could further support regional petroleum trade by providing a major source of refined products for Kenya and neighbouring countries, reducing the distance between producers and consumers in the region.
Dangote’s planned investment in Lamu mirrors the scale of his refinery in Nigeria, which also has a processing capacity of 700,000 barrels per day.
The Nigerian facility is being expanded, with Dangote recently raising funds through the sale of 4.1 million ordinary shares.
Also Read: Kenyan investors explore Dangote Refinery IPO through NSE GDR
