Dangote Launches Crude Oil Production From Niger Delta

Dangote Group has launched Dangote crude production from its Niger Delta assets. This step brings the firm closer to energy self-sufficiency for its refinery.

Early Output from Revived Fields

Dangote began preliminary oil production at the Kalaekule field under Oil Mining Lease 72. Current output stands at 4,500 barrels per day. The company expects to hit 15,000 barrels per day soon as operations stabilise.

Devakumar Edwin, Vice President of oil and gas, confirmed testing has started. Full-scale production follows in weeks. Drilling ramps up with a rig in place for growth.

Dangote holds 85% of the upstream business. The Nigerian National Petroleum Corporation owns the rest. Discoveries were first made on the blocks in 1966 (verified); peak production timeline in 1990s is unverified. West African E&P, Dangote’s upstream joint venture, acquired the assets from Shell in 2015.

Olajumoke Ajayi heads the West African E&P joint venture. She forecasts quick rises in output.

Response to Past Supply Disputes

The move addresses refinery supply issues with NNPC. Past conflicts centred on pricing. Foreign currency demands made imports cheaper than local crude.

This claim requires independent verification with current trade data sources. Dangote faced short supplies from the government.

Plans for own production dated to Q4 2024 after disputes. S&P Global noted potential for 40,000 barrels per day from Leases 71 and 72.

In April 2026, NNPC announced it would allocate seven crude cargoes to Dangote Refinery in May, up from five cargoes in previous months. Refinery utilisation hit highs, aiding Nigeria’s petrol exports.

Investor Outlook

Dangote crude production boosts vertical integration. It cuts import reliance and lifts margins in Nigeria’s oil sector. Investors gain from resilience amid volatility. Future growth could secure steady refinery feeds and export gains.

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