Dangote refinery to begin crude oil production soon — Report

 

The Dangote Group, owner of West Africa’s largest refinery, is gearing up to initiate crude oil production from its two Nigerian oil assets in the fourth quarter of 2024, as reported by S&P Global Commodity Insights on October 10.

According to sources within the company, Dangote is currently on the hunt for a floating production, storage, and offloading (FPSO) vessel with a capacity to hold 650,000 barrels of crude oil.

This strategic move is part of the company’s broader efforts to establish a foothold in the upstream oil sector.

 

A company insider stated, “Production at our Niger Delta projects is expected to begin at approximately 20,000 barrels per day (b/d), with plans to scale up in the first quarter of 2025.”

This production is set to take place at the company’s two upstream projects located in Oil Mining Leases (OMLs) 71 and 72.

The Dangote Group holds an 85% stake in West African E&P Venture, which possesses a 45% working interest in these blocks. The remaining 55% is held by the Nigerian National Petroleum Company (NNPC).

Additionally, First E&P, a Nigerian upstream company, plays a crucial role as an operator in these oil mining leases.

The licenses for OMLs 71 and 72 are situated in shallow waters in the southeastern Niger Delta, roughly 22 km from the Bonny terminal. This region is home to the promising Kalaekule and Koronama oilfields, which are expected to contribute significantly to the country’s oil production capacity.

As the Dangote Group moves closer to its production goals, this venture represents a critical step in enhancing Nigeria’s oil industry and the country’s overall energy landscape.