The Dangote Group says it has begun early-stage crude oil production from its Niger Delta licences, marking a significant step in its expansion into upstream operations. The development was disclosed by the company’s vice-president, Devakumar Edwin, in an interview with Platts, a unit of S and P Global Energy. He said initial well testing is already underway as the company prepares to ramp up output.
Edwin explained that a test well has been opened and standard testing procedures are expected to be completed within three to four weeks. He added that once testing is concluded, the company will begin pumping oil in larger volumes and move ahead with drilling additional wells to increase production capacity.
The chief executive officer of the Dangote Refinery, David Bird, said the upstream assets are expected to provide a more stable and reliable source of crude supply. He noted that the company is also exploring the establishment of its own shipping operations to reduce logistics costs and improve supply efficiency. According to him, integrating local production with Dangote-owned vessels could strengthen the refinery’s supply chain.
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Industry observers say the move could help address supply challenges that have affected the refinery since it commenced operations. The Nigerian National Petroleum Company recently increased crude allocations to the facility, while the Nigerian Upstream Petroleum Regulatory Commission has yet to comment on the latest development. The shift into crude production is seen as a strategic effort by Dangote to secure consistent feedstock and improve operational stability.
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