The Dangote Group has recorded its first oil from upstream operations, with plans underway to commence commercial crude production in the coming weeks.
Speaking in an interview with Platts, Vice-President, Devakumar Edwin, disclosed that initial testing has already started on crude from the company’s Niger Delta assets.
“We have opened a well and begun standard testing, which should be completed in the next three to four weeks maximum,” he said.
“After that point, oil can start to be pumped in larger volumes, and the company can begin work on drilling new wells.”
Also commenting, Chief Executive Officer of the Dangote Refinery, David Bird, noted that the company’s upstream expansion could ensure a more consistent crude supply for refining operations.
“Alongside its upstream interests, the company is seeking to establish its own shipping presence to help reduce logistics costs and improve the reliability of its crude sourcing,” Bird said.
“Combined with WAEP’s indigenous production, Dangote-owned vessels could offer the refinery a fully integrated and attractive source of stable crude supply.”
He added that while the refinery may take deliveries from the upstream operations, commercial considerations would determine final decisions.
“Dangote has interests in upstream, we will continue to grow that, but that doesn’t necessarily mean that it won’t be arms length at every phase,” he said.
The move is expected to ease supply constraints that previously affected refinery operations. Recently, the Nigerian National Petroleum Company Limited increased crude allocations to the refinery, committing seven cargoes for May, up from five in earlier months.
🚨BREAKING: Watch The Video Clip Here ➤
