Dangote Says Kenyan Court Order Won't Stop Lamu Refinery Groundbreaking
Dangote Group said a Kenyan court order will not halt the groundbreaking for its planned 700,000-bpd Lamu refinery, though site activities may be affected.
Nigeria's Dangote Group has said a Kenyan court order over a land rights claim will not prevent the groundbreaking ceremony for its planned oil refinery in Lamu, scheduled for Wednesday, although work at the site could be disrupted.
The Malindi Environment and Land Court directed that the "status quo prevailing" on the land be maintained until a hearing on October 14. The order was dated September 25 but became public only on Monday.
The case was brought by 133 residents of Chandavai in Lamu County, who contend that the land earmarked for the refinery is their ancestral heritage and that their families have lived and farmed there for generations.
In a statement, Dangote Group said the court had not stopped the groundbreaking at this stage. It added, however, that activities at the site may be affected because both parties are required to refrain from carrying out activities until the matter is heard on October 14.
The Lamu facility, planned on Kenya's coast, is intended to mirror the success of Dangote's 700,000-barrel-per-day plant near Lagos, which helped shift Nigeria from a major fuel importer into a growing exporter. Kenya, unlike Nigeria, currently has no commercial oil output.
Aliko Dangote, Africa's richest man and the owner of the business conglomerate, has estimated the Lamu refinery will cost between $15 billion and $16 billion, with completion targeted for 2030.
Earlier this month, Dangote launched Africa's largest-ever share sale through an initial public offering of the Lagos refinery.