The Dangote Group says it has achieved first oil from its upstream petroleum belongings and is making ready to start marketable crude production throughout the coming weeks, marking a big step towards integrating its oil operations.
Talking in an interview with Platts, a division of S&P International Power, Devakumar Edwin, Vice-President of the Dangote Group, mentioned early testing has begun on crude extracted from the corporate’s Niger Delta oil licences.
He mentioned the corporate has already began normal nicely testing and expects the method to be accomplished inside weeks.
“We now have opened a nicely and begun normal testing, which ought to be accomplished within the subsequent three to 4 weeks most,” Edwin mentioned.
“After that time, oil can begin to be pumped in bigger volumes, and the corporate can start work on drilling new wells.”
The event indicators the corporate’s entry into upstream crude production at a time when it’s also looking for to strengthen provide reliability for its refining operations.
David Fowl, Chief Govt Officer of the Dangote Refinery, mentioned the upstream belongings are anticipated to enhance crude availability and stability for the refinery.
He additionally famous that the corporate is working to determine its personal transport capability to cut back logistics prices and improve provide safety.
“Alongside its upstream pursuits, the corporate is looking for to determine its personal transport presence to assist scale back logistics prices and enhance the reliability of its crude sourcing,” Fowl mentioned.
“Mixed with WAEP’s indigenous production, Dangote-owned vessels may supply the refinery a completely built-in and enticing supply of secure crude provide.”
Fowl added that crude deliveries could be evaluated on business phrases, whereas emphasising that the corporate’s upstream growth wouldn’t essentially translate into direct inside transfers with out market issues.
“Dangote has pursuits in upstream, we’ll proceed to develop that, however that doesn’t essentially imply that it gained’t be arms size at each part,” he mentioned.
The Dangote Group didn’t instantly obtain responses from the Nigerian Upstream Petroleum Regulatory Fee (NUPRC) or the Dangote Refinery when contacted for remark.
The transfer into crude production is anticipated to assist handle provide gaps which have sometimes affected operations on the refinery because it started operations.
In April, the Nigerian Nationwide Petroleum Firm (NNPC) Restricted introduced it could allocate seven crude cargoes to the Dangote Refinery in Might, up from 5 cargoes in earlier months, as a part of efforts to stabilise feedstock provide.
Boluwatife Enome
Times Nigeria