Africa’s largest oil refinery has reached a landmark milestone: Dangote Petroleum Refinery has recorded its first oil output from its upstream Niger Delta assets and is weeks away from pumping marketable crude at scale — a development that could fundamentally reshape Nigeria’s downstream energy landscape.
Vice President of Dangote’s oil and gas division, Devakumar Edwin, confirmed the development in an interview on April 17, disclosing that initial well testing from the company’s Niger Delta licences is already underway. “We have opened a well and begun standard testing, which should be completed in the next three to four weeks,” Edwin said, adding that large-scale pumping and fresh drilling campaigns would follow shortly after. The company is currently producing approximately 4,500 barrels per day (bpd) from the Kalaekule field on Oil Mining Lease (OML) 72, following a delayed start-up in December 2025. That figure is expected to surge to 15,000 bpd within weeks, according to Olajumoke Ajayi, chief executive of West African Exploration and Production (WAEP), Dangote’s upstream joint venture.
Dangote holds an 85 per cent stake in WAEP, which has a 45 per cent working interest in OML 71 and 72. The Nigerian National Petroleum Company Limited (NNPC Ltd) holds the remaining stake, while First E&P operates the assets. Located in shallow waters approximately 22 kilometres from the Bonny terminal, the oil blocks were first discovered in 1966, acquired from Shell in 2015, and previously peaked at 21,000 bpd in 1999.
David Bird, CEO of Dangote’s refining business, said the company is investing in shipping to reduce logistics costs and improve supply stability, envisaging a fully integrated system spanning extraction, transportation, and refining. However, he noted that crude supply decisions would remain commercially driven: “The refinery will take the crude if it makes sense.”
Despite the upstream gains, Dangote’s oilfields will supply only a fraction of the refinery’s 650,000 bpd capacity. Forecasts indicate production from OML 71 and 72 could peak at about 43,000 barrels of oil equivalent per day by 2036. The refinery currently relies heavily on external crude, with Nigerian grades accounting for about 65 per cent of imports in early 2025, supplemented by supplies from the United States and Angola. Nigeria’s overall crude oil production has remained below government targets, standing at about 1.38 million bpd in March — significantly short of the 2 million bpd goal for 2026, constrained by underinvestment, oil theft, and limited exploration.
Source: allafrica.com