- Dangote Group will begin producing 20,000 barrels per day from its Niger Delta oil assets by Q4 2024, aiming to resolve supply issues.
- Production at Oil Mining Leases 71 and 72 will support the Dangote Refinery, which has faced crude shortages since operations began.
- NNPC ended its exclusive supply deal with Dangote Refinery, enabling direct fuel supplies via a new online portal.
Dangote Group, a Lagos-based diversified manufacturing conglomerate owned by billionaire Aliko Dangote, is set to commence crude oil production by the end of 2024, marking a major milestone for the refinery after months of crude supply challenges.
According to a report from S P Global Commodity Insights , Dangote Group plans to start producing 20,000 barrels per day bpd from its Nigerian oil assets located in the Niger Delta by the fourth quarter of 2024. This figure is expected to increase by the first quarter of 2025, with the company aiming to resolve its ongoing crude supply issues.
Production to begin at key oil blocksThe companys oil blocks, Oil Mining Leases OMLs 71 and 72, are located in shallow waters in the southeast Niger Delta, about 22 kilometers from the Bonny terminal. These oilfields, first discovered in 1966, are projected to hold around 300 million barrels of recoverable oil and 2.3 trillion cubic feet of natural gas.
Dangote Group has an 85 percent stake in the West African E P Venture, which holds a 45 percent working interest in the oil blocks, with the Nigerian National Petroleum Company NNPC controlling the remaining 55 percent. Production at these fields is expected to support the Dangote Oil Refinery, which has struggled with crude supply since its operations began.
Boost for Nigerias energy sectorDangote Petrochemical Complex, located on a Lagos peninsula, features a refinery and a polypropylene plant with a capacity of 1 million metric tons annually. It also houses two of the worlds largest fertilizer trains, producing 3 million tons of urea per year.
