Dangote Refinery Nears Crude Oil Production as Upstream Testing Advances

The Dangote Group says it has recorded its first oil from upstream assets and is preparing to begin commercial crude production within weeks, marking a significant step toward securing feedstock for its refinery operations.

In an interview with S&P Global Platts, Devakumar Edwin, vice-president of the group, confirmed that early-stage testing is underway on crude extracted from licences in the Niger Delta.

“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 additional drilling activities would follow shortly after testing is concluded.

The development signals progress in the company’s strategy to integrate upstream production with refining operations. David Bird, chief executive officer of the Dangote Refinery, said the upstream assets could provide a more stable and predictable crude supply.

Bird also indicated that the group is considering expanding into crude transportation to improve efficiency. According to him, developing an in-house shipping network alongside indigenous production could reduce logistics costs and strengthen supply reliability.

He noted, however, that commercial decisions around crude supply would remain subject to market conditions and the interests of joint venture partners.

Neither the refinery nor the Nigerian Upstream Petroleum Regulatory Commission responded to requests for comment at the time of reporting.

The move into crude production comes as the refinery continues to address supply challenges that have affected operations since its launch. Earlier this month, the NNPC Limited said it would increase crude allocations to the facility, with seven cargoes scheduled for delivery in May, up from five in previous months.

If successful, Dangote’s upstream push could help narrow supply gaps and reinforce the refinery’s long-term operational stability.