Dangote Refinery to Begin Crude Oil Production
The Dangote Refinery is set to commence crude oil production, as reported by S&P Global Commodity Insights. Despite ongoing difficulties in securing feedstock, the refinery is preparing to tap into its Niger Delta upstream projects, located in Oil Mining Leases (OML) 71 and 72.
Production is expected to start at around 20,000 barrels per day (b/d), with plans to increase output in early 2025. This marks a significant milestone for the Nigerian oil company as it moves toward full-scale production.
A company source confirmed that crude extraction will begin in the coming months, with output gradually increasing by the first quarter of next year. The development aims to enhance the company’s refining capacity and contribute to Nigeria’s local fuel supply.
The Nigerian government has also announced a Naira-for-crude agreement with Dangote Refinery. Under this deal, the Nigerian National Petroleum Company Limited (NNPCL) will supply crude oil to the refinery in exchange for payments in Naira. This directive aligns with President Bola Tinubu’s recent instruction to NNPCL to support Dangote Refinery with local currency transactions.
The news comes as NNPCL recently raised fuel prices to N1030 per litre in Abuja, signaling broader industry adjustments amidst fluctuating global oil prices.