The Dangote Group says it has recorded its first oil from upstream assets and is set to begin commercial crude production in the coming weeks.
Devakumar Edwin, vice-president of the group, disclosed in an interview with Platts (S&P Global Energy) that early-stage testing has already started on crude from its Niger Delta licences. He noted that standard well testing is underway and should be completed within three to four weeks, after which production can scale up and new wells will be drilled.
David Bird, CEO of the Dangote refinery, said the company’s upstream investments could help secure a more stable crude supply for refinery operations. He added that Dangote is also exploring the development of its own shipping capacity to reduce logistics costs and improve supply reliability.
Bird explained that while the refinery may take delivery of crude from its upstream assets, decisions will be based on commercial viability, with joint venture partners seeking to maximise value.
Neither the Dangote refinery nor the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) responded to enquiries at the time of the report.
The move into crude production is expected to help address supply challenges that have affected the refinery since it began operations. Earlier in April, the Nigerian National Petroleum Company (NNPC) Limited said it would increase crude allocation to the refinery to seven cargoes in May, up from five in previous months.