The Dangote Group says its refinery will soon begin crude oil production, in line with plans to secure its own supply.
Vice president Devakumar Edwin disclosed this in an interview with S&P Global Platts, confirming that early testing has started on oil from its Niger Delta assets.
“We have opened a well and begun standard testing, which should be completed in the next three to four weeks maximum,” he said.
“After that point, oil can start to be pumped in larger volumes, and the company can begin work on drilling new wells.”
Chief executive officer of the refinery, David Bird, said the move will help improve supply stability.
ALSO READ: Army nabs 15 oil thieves at Dangote Refinery discharge point
“Alongside its upstream interests, the company is seeking to establish its own shipping presence to help reduce logistics costs and improve the reliability of its crude sourcing,” Bird said.
“Combined with WAEP’s indigenous production, Dangote-owned vessels could offer the refinery a fully integrated and attractive source of stable crude supply.”
He added that supply decisions would remain commercially driven.
“Dangote has interests in upstream, we will continue to grow that, but that doesn’t necessarily mean that it won’t be arms length at every phase,” he said.
The Nigerian Upstream Petroleum Regulatory Commission has yet to comment, while the federal government has not officially confirmed the development.
The refinery has faced ongoing challenges with crude supply, despite increased allocations from the Nigerian National Petroleum Company Limited.