According to a report by S&P Global, the Dangote Refinery is expected to commence crude oil production in the coming days, marking a major milestone in Nigeria’s energy sector.
The report revealed that Dangote’s upstream operations, located in Oil Mining Leases (OML) 71 and 72 within the Niger Delta, are projected to begin producing about 40,000 barrels of crude oil daily.
S&P Global stated: “Dangote’s upstream assets in the Niger Delta, Oil Mining Lease 71 and 72, could soon provide another supply injection, with production expected to start this month and reach up to 40,000 barrels per day.”
The report further noted that the Group President, Alhaji Aliko Dangote, remains committed to expanding into new upstream ventures — a move expected to further strengthen the conglomerate’s fast-growing energy portfolio.
As the refinery ramps up operations, initial challenges in accessing sufficient crude oil supplies are anticipated to persist. However, Dangote Group has already secured a major partnership with the Nigerian National Petroleum Company Limited (NNPC Ltd) to address the supply shortfall.
Under a “crude-for-naira” swap arrangement, NNPC provides Dangote with 14 shipments of crude oil or their equivalent value in U.S. dollars. In exchange, Dangote supplies an equal volume of gasoline and gasoil, which are paid for in the local currency.
Industry analysts describe the move as a crucial step toward reducing Nigeria’s fuel import dependency and stabilizing the downstream petroleum market, positioning the refinery as a key player in Africa’s energy transformation.
𝗙𝗼𝗹𝗹𝗼𝘄 𝗢𝘂𝗿 𝗪𝗵𝗮𝘁𝘀𝗔𝗽𝗽 𝗖𝗵𝗮𝗻𝗻𝗲𝗹 𝗧𝗼 𝗚𝗲𝘁 𝗟𝗮𝘁𝗲𝘀𝘁 𝗡𝗲𝘄𝘀 𝗔𝘀 𝗜𝘁'𝘀 𝗗𝗿𝗼𝗽!
