The Dangote Group is moving closer to producing its own crude oil, with early-stage output already recorded and plans underway to begin full commercial production in the coming weeks.
Speaking to S&P Global’s Platts, the company’s vice-president, Devakumar Edwin, confirmed that initial well testing has commenced on its Niger Delta assets. He explained that the current phase involves standard testing procedures, which are expected to be completed within three to four weeks before production is ramped up.
Once testing is concluded, the company will begin pumping crude in larger volumes while advancing plans to drill additional wells. The development marks a significant shift for the group as it expands beyond refining into upstream operations.
Also commenting on the move, the refinery’s chief executive officer, David Bird, said the upstream assets are expected to provide a more stable and reliable source of crude supply. He added that the group is also working to establish its own shipping structure to cut logistics costs and improve supply efficiency.
According to him, combining local production with Dangote-owned vessels could create a more integrated system that reduces dependence on external suppliers. However, he noted that crude supply decisions would still be guided by commercial value and existing partnerships.
The move comes as the refinery continues to deal with supply gaps that have affected its operations since launch. Industry watchers say in-house crude production could help ease that pressure, especially as the Nigerian National Petroleum Company recently increased cargo allocations to the refinery.