Dangote Petroleum Refinery has recorded first oil from its upstream assets in the Niger Delta, with marketable crude expected within weeks. Devakumar Edwin, Vice President of Dangote's oil and gas division, said on 17 April that a well had been opened and standard testing was underway, to be completed in three to four weeks. Initial production is coming from the Kalaekule field on Oil Mining Lease (OML) 72, where output stands at about 4,500 barrels per day since a delayed start in December 2025. Olajumoke Ajayi, CEO of West African Exploration and Production (WAEP), Dangote's upstream joint venture, said production could rise to 15,000 barrels per day soon. Dangote holds an 85% stake in WAEP, which has a 45% working interest in OML 71 and 72, with NNPC Ltd holding the remainder and First E&P as operator. The shallow-water oil blocks, located 22 kilometres from the Bonny terminal, were acquired from Shell in 2015 and previously produced up to 21,000 barrels per day in 1999. David Bird, CEO of Dangote's refining business, said the company is investing in shipping to support a fully integrated system from extraction to refining. However, he stressed that crude supply decisions would remain commercially driven, stating, "The refinery will take the crude if it makes sense." Current forecasts suggest OML 71 and 72 could produce up to 43,000 barrels of oil equivalent per day by 2036—still far below the refinery's 650,000-barrel-per-day capacity. Nigerian crude accounted for 65% of the refinery's imports in early 2025, with the rest from the United States and Angola. NNPC Ltd is expected to supply up to half the refinery's feedstock, though past inconsistencies persist. Nigeria's crude output was 1.38 million barrels per day in March, below the 2 million bpd target for 2026.
Dangote is building a fully integrated oil system while relying on NNPC Ltd, an entity known for inconsistent supply, to deliver half the refinery's feedstock. The refinery's 650,000-barrel capacity dwarfs the projected 43,000-barrel peak from Dangote's upstream assets by 2036, leaving a massive gap. Nigerians paying for fuel under the new pricing regime will bear the cost of this mismatch. The company's self-sufficiency claims rest on partnerships and projections that have yet to prove reliable.
💡 NaijaBuzz is an AI-assisted news aggregator. This content is curated from third-party sources — NaijaBuzz is not the original publisher and is not responsible for the accuracy of source reporting. The NaijaBuzz Take is AI-assisted editorial opinion only, not established fact. All persons mentioned are presumed innocent until proven guilty by a court of competent jurisdiction. NaijaBuzz does not endorse the views expressed in source articles.
