Dangote Refinery crude oil production begins in late 2024 at Nigerian oil fields, starting with 20,000 bpd to ease feedstock challenges.
[dropcap]A[/dropcap]mid feedstock issues, Dangote Refinery crude oil production is set to begin in Q4 2024 at its Nigerian oil assets, with an initial 20,000 barrels per day.
Amid ongoing feedstock challenges, the Dangote Group is preparing to commence crude oil production at its two Nigerian oil assets in the Niger Delta by the fourth quarter of 2024.
Also read: Dangote group plans to transport refined petroleum products by Sea
The company, which owns the Dangote Refinery, will start production at Oil Mining Leases (OMLs) 71 and 72, initially producing around 20,000 barrels per day before increasing output by the first quarter of 2025.
S&P Global Commodity Insights reports that Dangote is currently searching for a floating production, storage, and offloading vessel with a 650,000-barrel capacity.
The group holds an 85% stake in West African E&P Venture, which owns a 45% working interest in the two blocks alongside the Nigerian National Petroleum Company’s 55% stake.
The oilfields contain significant recoverable resources, including nearly 300 million barrels of oil and 2.3 trillion cubic feet of natural gas.
The startup of production is expected to help Dangote Refinery supplement its crude feedstock after months of supply struggles, which had led the company to import crude oil from the US.
The refinery, designed to reduce Nigeria’s dependence on imported refined products, has already begun producing various petroleum products such as gasoline and diesel for domestic use and export.
With crude production set to begin, the refinery aims to resolve its feedstock challenges and enhance its output capacity.
