Table of Contents
Key Points
- Dangote Group will begin producing 20,000 barrels per day from its Niger Delta oil assets by Q4 2024, aiming to resolve supply issues.
- Production at Oil Mining Leases 71 and 72 will support the Dangote Refinery, which has faced crude shortages since operations began.
- NNPC ended its exclusive supply deal with Dangote Refinery, enabling direct fuel supplies via a new online portal.
Dangote Group, a Lagos-based diversified manufacturing conglomerate owned by billionaire Aliko Dangote, is set to commence crude oil production by the end of 2024, marking a major milestone for the refinery after months of crude supply challenges.
According to a report from S&P Global Commodity Insights, Dangote Group plans to start producing 20,000 barrels per day (bpd) from its Nigerian oil assets located in the Niger Delta by the fourth quarter of 2024. This figure is expected to increase by the first quarter of 2025, with the company aiming to resolve its ongoing crude supply issues.
Production to begin at key oil blocks
The company’s oil blocks, Oil Mining Leases (OMLs) 71 and 72, are located in shallow waters in the southeast Niger Delta, about 22 kilometers from the Bonny terminal. These oilfields, first discovered in 1966, are projected to hold around 300 million barrels of recoverable oil and 2.3 trillion cubic feet of natural gas.
Dangote Group has an 85-percent stake in the West African E&P Venture, which holds a 45-percent working interest in the oil blocks, with the Nigerian National Petroleum Company (NNPC) controlling the remaining 55 percent. Production at these fields is expected to support the Dangote Oil Refinery, which has struggled with crude supply since its operations began.
Boost for Nigeria’s energy sector
Dangote Petrochemical Complex, located on a Lagos peninsula, features a refinery and a polypropylene plant with a capacity of 1 million metric tonnes annually. It also houses two of the world’s largest fertilizer trains, producing 3 million tonnes of urea per year.
The NNPC recently ended its exclusive supply agreement with the Dangote Refinery. This decision, implemented shortly after the refinery commenced petrol production, opens the door for direct fuel supplies through a newly established online portal.
Beyond his industrial endeavors, Aliko Dangote, with a net worth of $12.7 billion, has announced plans to establish a family office in Dubai. This aligns with a growing trend among high-net-worth individuals seeking to secure their wealth and assets in the United Arab Emirates.
