The Dangote Group has announced a major milestone in its energy ambitions, confirming it has achieved its first oil from upstream assets in Nigeria’s Niger Delta.
The development signals a strategic shift as the company moves closer to securing its own crude supply for the Dangote Refinery, one of Africa’s largest refining projects.
Speaking to Platts, part of S&P Global Energy, Devakumar Edwin, vice-president of the Dangote Group, revealed that early-stage testing 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.
He added that once testing is completed, the company will ramp up production and begin drilling additional wells, marking the transition to commercial output.
The refinery’s chief executive, David Bird, highlighted the importance of upstream integration, noting that in-house crude production could stabilise supply and reduce reliance on external sources.
“Alongside upstream interests, the company is working to establish its own shipping operations to cut logistics costs and improve supply reliability,” Bird said.
He explained that combining indigenous production with Dangote-owned vessels could create a fully integrated supply chain for crude delivery.
However, Bird stressed that crude supply decisions would remain commercially driven. “The refinery will take the crude if it makes sense,” he noted, adding that joint venture partners would seek maximum value for produced barrels.
The move comes as the refinery continues to address supply challenges that affected its early operations. Increased allocations from NNPC Limited including seven cargoes scheduled for May have helped ease pressure, but Dangote’s upstream push could provide a longer-term solution.
Regulators, including the Nigerian Upstream Petroleum Regulatory Commission, have yet to comment on the development.
Industry analysts say the milestone could reshape Nigeria’s oil value chain by positioning Dangote as both a producer and refiner, potentially reducing supply bottlenecks and strengthening domestic energy security.
