Dangote Group, wey own West Africa‘s largest refinery, dey prepare to start crude oil production from their two Nigerian oil assets for the fourth quarter of 2024, according to report from S&P Global Commodity Insights.
The company dey search for a floating production, storage, and offloading (FPSO) vessel with a capacity to hold 650,000 barrels of crude oil. This move na part of their plan to establish themselves in the upstream oil sector.
Production at their Niger Delta projects, specifically in Oil Mining Leases (OMLs) 71 and 72, go start with about 20,000 barrels per day (b/d) and then increase further in the first quarter of 2025. Dangote Group hold 85% stake in West African E&P Venture, which have 45% working interest in these blocks, while Nigerian National Petroleum Company (NNPC) hold the remaining 55%.
First E&P, another Nigerian upstream company, dey operate these oil mining leases. The licenses for these blocks dey in shallow waters in the southeastern Niger Delta, about 22 km from the Bonny terminal, and they contain the Kalaekule and Koronama oilfields.
The Dangote Refinery, which come online in January, struggle to get enough Nigerian crude in its early months, forcing dem to import large volumes of WTI Midland crude from the US. However, dis new production go help supplement their crude feedstock and reduce their reliance on imported crude.
The refinery, wey cost $20 billion to build, aim to end Nigeria’s long-time dependence on imported refined products. So far, dem don produce petrol, diesel, jet fuel, and naphtha for domestic use and export.
