The Dangote Group has started early-stage oil production from its Niger Delta assets. This development brings the company closer to supplying crude directly to its refinery.
The production effort is already underway at the Kalaekule field under Oil Mining Lease 72. Initial output currently stands at about 4,500 barrels per day.
According to Devakumar Edwin, Vice President of Dangote’s oil and gas division, testing activities have already begun. He noted that full-scale production is expected soon as operations continue to expand.
Meanwhile, drilling operations are being intensified. A drilling rig has already been secured to support further growth in output capacity.
Olajumoke Ajayi, who leads the upstream joint venture West African E&P, also shared insights into the project. She stated that production could reach 15,000 barrels per day within a month as operations stabilize.
The Kalaekule field has a long history. Oil was first discovered in the area in the 1960s. Production peaked in the late 1990s but later declined. However, the fields were revived after Dangote acquired them in 2015.
Dangote currently controls 85 percent of the upstream business. Meanwhile, the Nigerian National Petroleum Corporation holds the remaining stake.
Furthermore, the refinery has previously struggled with crude supply issues. Disagreements over pricing arrangements had created tension with the national oil company.
The plan to produce crude locally had been in development for several years. Reports had earlier indicated that production could start before the end of 2025.
Moreover, industry reports suggested that output from Oil Mining Leases 71 and 72 could eventually reach up to 40,000 barrels per day.
However, challenges remain. Scaling production to meet refinery demand will require sustained investment and efficient operations.
