The Dangote Group has confirmed the start of crude oil production from its upstream assets in Nigeria, marking a new phase in its energy expansion strategy.
The development was disclosed after early testing began on crude from its Niger Delta oil licences. The company says it is now preparing for full commercial output in the coming weeks.
Devakumar Edwin, Vice President of the Dangote Group, said the firm has already opened a well and started standard testing operations.
“We have opened a well and begun standard testing, which should be completed in the next three to four weeks maximum,” Edwin said.
He added that once testing is completed, production will scale up significantly, with new drilling activities expected to follow.
Early Output from Niger Delta Oil Fields
Olajumoke Ajayi, Chief Executive Officer of Dangote’s upstream joint venture West African E&P, confirmed that production has already begun at the Kalaekule field.
The field is located on Oil Mining Lease (OML) 72 in the Niger Delta, where operations restarted after a long period of inactivity.
Ajayi said current output stands at about 4,500 barrels per day, following start-up activities in December 2025.
She added that production is expected to rise quickly in the coming weeks.
“Output is expected to ramp up to 15,000 barrels per day within the next month,” Ajayi said.
The assets sit in shallow waters about 22 kilometres from the Bonny export terminal. Exploration dates back to 1966, with peak production recorded at 21,000 barrels per day in 1999 before a decline in the early 2000s.
Ownership Structure and Integration Strategy
Dangote holds an 85% stake in the upstream venture through West African E&P (WAEP), which itself controls a 45% working interest in OML 71 and OML 72.
The Nigerian National Petroleum Company (NNPC) Limited holds the remaining stake, while First E&P operates the fields as a minority partner.
The project is expected to support Dangote Refinery’s crude supply chain, reducing reliance on external sources and improving stability.
David Bird, Chief Executive Officer of Dangote Refinery, said the upstream assets could strengthen supply security for the refinery’s operations.
“Combined with WAEP’s indigenous production, Dangote-owned vessels could offer a fully integrated and attractive source of stable crude supply,” Bird said.
He added that crude purchases would depend on commercial viability, noting that transactions will remain at arm’s length despite shared ownership structures.
The refinery has already been receiving crude allocations from NNPC, including seven cargoes scheduled for May, up from five in earlier months.
The Dangote Group’s entry into upstream oil production signals a deeper push into Nigeria’s energy value chain, from exploration to refining.
Industry watchers say the move could help close supply gaps that have previously challenged refinery operations in the country.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Dangote Refinery have yet to issue additional comments on the development.
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