Date for Dangote’s crude oil production shifts to 2025

Following an ambitious goal to refine oil in Nigeria for the first time in decades, the Nigerian industrialist, Aliko Dangote, has now set his sights on crude oil exploration. The initial date for this had been sometime in Q4 of 2024, however, Dangote’s crude production would begin in 2025.

This decision to commence oil exploration follows two months of crude supply dispute between Dangote and Nigerian authorities.

Aliko Dangote aims to begin crude oil exploration in Nigeria by 2025.

S&P Global Commodity Insights, released a report, highlighting Dangote’s objective to begin oil production by 2025, at its two oil properties in the southern state of Delta in Nigeria.

“The company source said production at the company’s two Niger Delta upstream projects in Oil Mining Leases 71 and 72 would start at around 20,000 b/d, before ramping up further in the first quarter of 2025,” the report revealed.

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The report earlier revealed that the launch date was intended for Q4 2024, however, the date was revised.

According to the Punch, this information was confirmed by a senior official at the Dangote refinery on Saturday as he responded to the report by S&P Global Commodity Insights.

“Yes, I saw the S&P report; our company is truly going to start crude oil production to support the refinery, but it is going to start in the first quarter of 2025,” the senior official relayed.

Dangote’s crude saga

The distribution of refined petrol from the Dangote refinery, has been subject to several delays, owing to an intense debacle between the refinery and the government, concerning the sale of crude.

NNPCL has been accused of preventing Dangote from accessing locally produced petroleum

There were accusations that the Nigerian National Petroleum Company Limited (NNPCL) was preventing Dangote from accessing locally produced petroleum by either selling it above market price, selling it in US dollars as opposed to the Naira, and a claim that crude was unavailable.

At the time, the Dangote refinery was forced to purchase oil from the international market, including Brazil and the United States at a very expensive rate.

Following these adverse events, Dangote, according to the report, decided to initiate crude production at its two Niger Delta upstream projects in Oil Mining Leases 71 and 72, starting with around 20,000 barrels per day and scaling up further in the first quarter of 2025.

Additionally, Dangote is also looking for a floating production, storage, and offloading vessel capable of carrying 650,000 barrels of petroleum.