Dangote Group has begun producing crude oil from its upstream assets and is working toward releasing commercially saleable volumes in the coming weeks, according to senior officials in its oil and gas division.
Test output is ongoing from licences in the Niger Delta, with drilling equipment already positioned to expand activity across the fields.
Present production is about 4,500 barrels per day from the Kalaekule field on Oil Mining Lease 72 after a long-delayed start-up was completed late last year. The company expects output to rise to roughly 15,000 barrels per day within a month as testing wraps up and new wells come on stream.
The upstream business operates through West African E&P, where Dangote holds a majority stake. The joint venture has interests in Oil Mining Lease 71 and OML 72, alongside the state oil company and a minority partner responsible for operations.
Located about 22 kilometres from the Bonny Terminal in shallow offshore waters, the blocks were first discovered in the 1960s and once produced more than 20,000 barrels per day before output declined. The assets changed hands in 2015.
Executives at the 650,000-barrel-per-day Dangote Petroleum Refinery say the new production could provide a more dependable crude source for the plant, which recently reached full operating capacity. Any supply arrangement, however, will be based on commercial agreements among partners.
The refinery is also considering building its own shipping capacity to cut logistics costs and improve delivery reliability, aiming for a tighter link between production, transport and refining.
Industry projections indicate that combined output from the two leases could grow steadily over the next decade, though still well below the refinery’s total crude needs. In the meantime, the refinery continues to process a mix of Nigerian and foreign crude grades, including supplies from the United States and Angola, and plans to widen that basket further.
The Nigerian National Petroleum Company Limited is expected to provide a significant portion of the refinery’s feedstock through a mix of naira and dollar transactions as domestic availability improves.
Nigeria’s overall oil production remains below its 2026 target of 2 million barrels per day due to issues such as underinvestment and crude theft. Latest regulatory figures put national output at about 1.38 million barrels per day in March.
With first oil now flowing and drilling activity set to increase, Dangote’s entry into upstream production marks a step toward securing more control over crude supply for its refining operations.
