Dangote Refinery To Start Crude Oil Production

• Dangote Group Achieves First Oil in Niger Delta

The Dangote Group has achieved first oil from its upstream assets in the Niger Delta and is set to begin pumping marketable crude in the coming weeks.

Vice-president Devakumar Edwin told Platts, part of S&P Global Energy, that early testing is already under way on crude from the company’s Niger Delta licences. He confirmed the firm has opened a well and started standard testing, which should wrap up in the next three to four weeks at most.

Edwin added that once testing ends, oil volumes can increase and new wells will follow.

Olajumoke Ajayi, chief executive of Dangote’s upstream joint venture West African Exploration and Production (WAEP), said the project is already producing about 4,500 barrels per day from the Kalaekule field on Oil Mining Lease 72. The output began after the long-awaited start-up in December 2025.

Ajayi disclosed that production is expected to climb to 15,000 barrels per day within the next month.

Dangote holds an 85 per cent stake in WAEP, which owns a 45 per cent working interest in OML 71 and 72. The Nigerian National Petroleum Company Limited holds the balance while First E&P operates the assets.

The licences sit in shallow waters of the Niger Delta’s south-east, roughly 22 kilometres from the Bonny terminal. Discoveries date back to 1966, with WAEP buying the blocks from Shell in 2015 after output once peaked at 21,000 barrels per day in 1999.

Dangote Refinery chief executive David Bird said the upstream assets will offer a more stable crude supply for the facility. He noted the company is also building its own shipping arm to cut logistics costs and secure reliable feedstock.

Bird explained the refinery will lift the crude “if it makes sense,” stressing dealings with joint venture partners will remain at arm’s length to ensure maximum value.

NaijaChoice News understands this development will help close persistent supply gaps that have affected the refinery since it came on stream. It follows NNPC’s decision to raise crude allocation to the plant to seven cargoes in May, up from five in earlier months.

Neither the Dangote Refinery nor the Nigerian Upstream Petroleum Regulatory Commission responded to enquiries on the latest upstream milestone.