The Dangote Refinery is preparing to commence crude oil production from its newly acquired assets in the Niger Delta.
The company’s upstream units, Oil Mining Lease 71 and Oil Mining Lease 72, are expected to produce about 40,000 barrels of crude oil per day when fully operational.
This development represents a major shift in Dangote Industries Limited’s energy strategy and positions it as a fully integrated player in Nigeria’s oil and gas value chain.
The planned output will ensure direct access to crude feedstock, improve refinery efficiency, and reduce exposure to external sourcing challenges that have affected operations since the plant began partial production.
Industry observers view the move as an important milestone in the company’s bid to achieve a closed-loop supply system. By producing its own crude, the Dangote Refinery will be able to optimize cost structures, stabilize product flow, and enhance price competitiveness in the domestic market.
It also reflects the group’s broader industrial vision to establish an end-to-end energy ecosystem that supports Nigeria’s drive for self-sufficiency in refined petroleum products.
A supply arrangement with the Nigerian National Petroleum Company Limited remains in place to ensure consistent delivery of crude oil alongside the refinery’s own production.
The collaboration provides operational stability while reinforcing national efforts to expand local refining capacity.
The initiative is part of ongoing reforms aimed at reducing import dependency, conserving foreign exchange, and deepening private-sector participation in the energy sector.
Analysts believe the additional 40,000 barrels per day expected from the two leases will not only secure feedstock for Dangote’s refinery but could also contribute positively to Nigeria’s overall output.
The integration of upstream and downstream operations is expected to enhance the country’s energy security, create industrial value, and attract new investment into the domestic petroleum market.
The commencement of production from OML 71 and 72 is a defining moment for Dangote Industries and for Nigeria’s broader industrial landscape.
Once full operations begin, the company will emerge as Africa’s most significant integrated energy enterprise, capable of producing crude, refining it domestically, and supplying finished products across the region.
The achievement underscores the country’s transition toward a more self-reliant and resilient energy economy.