The Dangote Group has officially commenced crude oil production from its upstream assets in the Niger Delta, marking a pivotal shift in Aliko Dangote’s ambition to create a fully integrated energy giant. The company announced on Monday that it has successfully tapped first oil from the Kalaekule field, located within Oil Mining Lease (OML) 72. This development is expected to provide a consistent, albeit initial, stream of domestic feedstock for the 650,000 barrels-per-day Dangote Petroleum Refinery.
Production at the shallow-water field is currently undergoing a rigorous testing phase to ensure well integrity and flow stability. According to official statements from the company, the asset is currently yielding approximately 4,500 barrels per day. Devakumar Edwin, the Vice President of Dangote Group, confirmed the timeline for the next phase of operations, noting that standard well testing is expected to be completed within three to four weeks. Once the testing period concludes, the company plans to initiate large-scale pumping to ramp up output.
The move into upstream production is a strategic response to the supply challenges that have hampered the refinery since its commissioning. By producing its own crude, the group seeks to insulate itself from the volatility of international markets and the recurring shortages in domestic crude allocations. Devakumar Edwin emphasised the strategic importance of this milestone, stating that the group is focused on vertical integration to reduce costs and stabilise the supply chain. He noted that the ultimate goal is to reach a production peak of approximately 43,000 barrels of oil equivalent per day by 2036.
While the current output of 4,500 barrels per day is only a fraction of the refinery's massive daily requirement, industry analysts view it as a critical proof of concept. To support the refinery’s immediate needs, the Nigerian National Petroleum Company (NNPC) Limited has also stepped up its commitments. Recent reports indicate that the NNPC will increase its supply to the facility to seven cargoes in May 2026, a significant increase from the average of five cargoes supplied in previous months.
The successful extraction of oil at OML 72 represents a major victory for Nigerian indigenous participation in the upstream sector. As the Dangote Group expands its footprint from refining into exploration and production, it sets a precedent for private-sector-led energy security in West Africa. The company remains optimistic that this integrated model will eventually eliminate Nigeria’s dependence on imported refined petroleum products, fundamentally altering the nation's economic landscape.