The Dangote Group, owner of West Africa’s largest refinery, is preparing to start crude oil production from two Nigerian oil assets in early 2025, according to a report by S&P Global Commodity Insights on 10 October.
To support this, the company is searching for a floating production, storage, and offloading (FPSO) vessel capable of holding 650,000 barrels of crude oil. This move marks a key step in Dangote’s plans to expand into the upstream oil sector.
An insider from the company told Tribune, “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 will take place at Dangote’s two upstream projects in Oil Mining Leases (OMLs) 71 and 72.
The Dangote Group holds an 85% stake in West African E&P Venture, which has a 45% working interest in these oil blocks. The remaining 55% is owned by the Nigerian National Petroleum Company Limited (NNPCL). First E&P, a Nigerian upstream company, is the operator for the projects.
The licences for OMLs 71 and 72 are located in shallow waters in the southeastern Niger Delta, around 22 kilometres from the Bonny terminal. These areas include the Kalaekule and Koronama oilfields, which are expected to boost Nigeria’s oil output.
As Dangote approaches its production targets, this venture is seen as a significant milestone in advancing Nigeria’s oil industry and enhancing the country’s energy capabilities. This development will contribute to Nigeria’s oil production capacity, helping to strengthen its position in the global energy market.