Dangote Group is set to begin crude oil production in the fourth quarter of 2024, following months of challenges in securing feedstock for its refinery, Okay.ng reports.
The company plans to begin production at its two Nigerian oil assets, Oil Mining Leases 71 and 72, located in the Niger Delta. Initially, the production will start at around 20,000 barrels per day and will increase further in the first quarter of 2025.
The Dangote Refinery, valued at $20 billion, began operations in January and started its residue catalytic cracker in early September, enabling high-volume petrol production. However, the refinery faced difficulties in obtaining sufficient Nigerian crude, leading to imports of WTI Midland crude from the US. This sparked tensions between the NNPC, international oil companies, Dangote, and Nigeria’s upstream regulators.
Dangote is currently seeking a floating production, storage, and offloading vessel with a capacity of 650,000 barrels of crude. The company holds an 85% stake in West African E&P Venture, which has a 45% working interest in the two blocks, alongside the Nigerian National Petroleum Company’s 55% stake.
This development is expected to supplement the refinery’s crude feedstock and reduce reliance on imports.
