Dangote To Begin Crude Oil Production, Reduces Dependence on NNPC
- Dangote Refinery has recorded its first oil from the Niger Delta assets and will begin commercial crude production
- Initial output stands at about 4,500 barrels per day, with plans to ramp up production to 15,000 bpd
- The move is expected to reduce reliance on the Nigerian National Petroleum Company Limited
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Dangote Group is set to begin crude oil production from its upstream assets, a decision that will help reduce its dependence on Nigerian National Petroleum Company Limited for feedstock supply for its refinery.
The company has already recorded its first oil from fields located in the Niger Delta and is currently conducting standard well testing for marketable crude in the coming weeks.
Source: Getty Images
Crude oil production
The development was announced by the Vice President of Dangote’s oil and gas division, Devakumar Edwin, in an interview with S&P Global’s Platts on 17 April.
He revealed that the testing phase is expected to be completed within weeks, after which commercial production will commence alongside fresh drilling campaigns.
His words:
"We have opened a well and begun standard testing, which should be completed in the next three to four weeks,” Mr Edwin said, adding that large-scale pumping and fresh drilling campaigns would follow shortly after."
Dangote Group is currently producing from the Kalaekule field on Oil Mining Lease (OML) 72, which is estimated at 4,500 barrels per day. Production is projected to ramp up to 15,000 barrels per day in the near term as operations scale up across the asset.
Dangote operates the upstream assets through a joint venture in which it holds a majority stake.
Dangote holds an 85 per cent stake in WAEP, which has a 45 per cent working interest in OML 71 and 72. The Nigerian National Petroleum Company Limited (NNPC Ltd) holds the remaining stake, while First E&P operates the assets.
Big boost for Dangote refinery
Officials say the upstream push could provide a more reliable crude supply for the Dangote refinery, which recently reached its full nameplate capacity of 650,000 barrels per day.
David Bird, CEO of Dangote’s refining business, said the company is also investing in shipping to reduce logistics costs and improve supply stability.
However, Bird noted that crude supply decisions would remain commercially driven. Premium Times reports.
He said:
“The refinery will take the crude if it makes sense."
The upstream expansion reflects Dangote’s broader strategy to build a fully integrated oil business, combining production, transportation, and refining.
Source: Getty Images
Dangote refinery has a capacity of 650,000 barrels per day and remains heavily dependent on foreign crude supplies.
Although Nigerian crude accounted for a significant share of its intake in early 2025, it is supplemented by imports from international markets.
Despite Dangote's plan for crude oil production, Nigerian National Petroleum Company Limited is expected to continue supplying a portion of the refinery’s crude.
Crude oil prices rise above N100
Legit.ng earlier reported that global oil prices surged sharply on Monday, April 13, after Donald Trump announced a naval blockade targeting Iran, raising fears of supply disruption across international energy markets.
Brent crude, the global benchmark, rose more than 8% to trade above $103 per barrel on Monday, crossing the psychologically significant $100 threshold for the first time since last week, when prices briefly surged past $111 per barrel.
Source: Legit.ng
