Dangote Refinery To Start Crude Oil Production

 The Dangote Group says it has achieved its first oil from its upstream assets and is preparing to begin marketable crude production in the coming weeks.

In an interview with Platts, part of S&P Global Energy, Devakumar Edwin, the vice-president of the Dangote Group, said early testing has commenced on crude from its Niger Delta licences.

According to Edwin, the company has already begun standard well testing and is preparing to scale up output.

“We have opened a well and begun standard testing, which should be completed in the next three to four weeks maximum,” he said.

“After that point, oil can start to be pumped in larger volumes, and the company can begin work on drilling new wells.”

Also speaking, Olajumoke Ajayi, the CEO of Dangote’s upstream joint venture West African E&P, said the Dangote-backed upstream project is currently producing about 4,500 barrels per day (bpd) from the Kalaekule field on oil mining lease (OML) 72, following its long-awaited start-up in December 2025.

Ajayi said output is expected to ramp up to 15,000 bpd within the next month.

Dangote is said to hold an 85 percent stake in the upstream business, also known as WAEP, which in turn holds a 45 percent working interest in two oil licences — OML 71 and 72.

The balance is held by the Nigerian National Petroleum Company (NNPC) Limited, while WAEP’s minority stakeholder, First E&P, operates the assets.

Based in the shallow water of the Niger Delta’s south east, the two oil licences are located roughly 22 kilometers from the country’s onshore Bonny terminal.

Discoveries were first made on the blocks in 1966, with WAEP acquiring the assets from Shell in 2015. Output peaked at 21,000 b/d in 1999, before declining in 2003.

On his part, David Bird, the chief executive officer (CEO) of the Dangote refinery, said the upstream assets could provide a more stable crude supply for the refinery.

“Alongside its upstream interests, the company is seeking to establish its own shipping presence to help reduce logistics costs and improve the reliability of its crude sourcing,” Bird said.

“Combined with WAEP’s indigenous production, Dangote-owned vessels could offer the refinery a fully integrated and attractive source of stable crude supply.”

He said the refinery will take delivery of the crude “if it makes sense”, noting that the company’s joint venture partners will be eager to realise maximum value for the barrels produced.

“Dangote has interests in upstream, we will continue to grow that, but that doesn’t necessarily mean that it won’t be arms length at every phase,” he said.

The Dangote refinery and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) did not respond to enquiries on the development as of the time of filing this report.

Crude oil production could help close supply gaps, a major challenge that threatened the refinery’s operations when it came on stream.

On April 1, the Nigerian National Petroleum Company (NNPC) Limited said it would allocate seven cargoes in May to Dangote refinery, an increase from the five allocated in previous months.