Dangote Group has announced plans to begin large-scale crude oil production in the coming weeks through its upstream assets.
The company’s vice president, Devakumar Edwin, disclosed this in an interview with Platts, part of S&P Global.
He revealed that early testing has already commenced on crude from its Niger Delta licenses.
According to Edwin, standard well testing is currently underway as the company prepares to ramp up output.
“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,” he added.
Also speaking, David Bird said the upstream push could help guarantee more stable crude supply for the refinery.
“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 stated.
However, the Nigerian government is yet to officially confirm the development as of the time of filing this report.
The move comes as the Dangote Refinery continues to face crude supply challenges, despite recent assurances from Nigerian National Petroleum Company Limited to increase deliveries.
