Dangote is set to commence production at its two Niger Delta upstream projects, Oil Mining Leases 71 and 72, in Q4 2024, with initial output of 20,000 barrels per day (b/d), increasing in Q1 2025. This development aims to supplement crude feedstock for the company’s 650,000 b/d refinery in Lagos, which has faced supply issues.
The refinery, Africa’s most prominent downstream project, began operations in January and started its residue catalytic cracker in September, enabling high-volume gasoline production.
Dangote owns 85% of West African E&P Venture, which holds a 45% interest in the blocks, alongside the Nigerian National Petroleum Company (NNPC). The fields, containing Kalaekule and Koronama oilfields, were discovered in 1966 and produced 21,000 b/d in 1999.
Despite declining output, the fields still hold 300 million barrels of oil and 2.3 trillion cubic feet of natural gas. Production is forecast to reach 43,000 barrels of oil equivalent per day (boe/d) by 2036.
The refinery has produced various fuels for domestic use and export but struggled to obtain sufficient Nigerian crude, leading to imports of US crude and sparking a public row between stakeholders.
With NNPC’s reduced stake in the project, Dangote may explore alternative crude sources, including Libya, Senegal and Brazil, to meet 60% of its demand. Analysts expect the refinery to reach steady-state production by 2027, yielding 327,000 b/d of gasoline.
