Dangote Industries Achieves First Upstream Crude Output as Firm Moves Toward Total Vertical Integration

Dangote Petroleum Refinery begins crude production at OML 72, aiming for 15,000 bpd to secure an integrated supply chain for its 650,000 bpd refinery.

By: AXL Media

Published: Apr 21, 2026, 6:29 AM EDT

Source: Information for this report was sourced from Premium Times

Strategic Shift to Upstream Production

Dangote Petroleum Refinery has officially transitioned into a producer of crude oil, marking a pivotal milestone in its quest for energy self-sufficiency. Devakumar Edwin, Vice President of Dangote’s oil and gas division, confirmed that testing is currently underway on the firm’s Niger Delta licenses. The company has successfully opened a well and initiated standard testing protocols, which are expected to conclude within the next month. This development signals the commencement of large-scale pumping and a fresh series of drilling campaigns designed to feed the sprawling 650,000 barrels-per-day (bpd) refinery located in the Lekki Free Zone.

Production Milestones and Joint Venture Structure

The current production is centered on the Kalaekule field within Oil Mining Lease (OML) 72. Despite a delayed start in late 2025, the field is currently yielding approximately 4,500 bpd. According to Olajumoke Ajayi, CEO of West African Exploration and Production (WAEP)—the joint venture through which Dangote operates—output is projected to triple to 15,000 bpd within the coming weeks. Dangote holds a dominant 85% stake in WAEP, which maintains a 45% working interest in OML 71 and 72, with the Nigerian National Petroleum Company Limited (NNPC Ltd) holding the remaining interest.

The Vision for Vertical Integration

By producing its own feedstock, Dangote Industries is pursuing a "fully integrated" energy model that spans extraction, transportation, and refining. David Bird, CEO of Dangote’s refining business, emphasized that the company is simultaneously investing in shipping infrastructure to reduce logistics costs and stabilize the supply chain. While the refinery has now reached its full nameplate capacity, the ability to source crude internally is expected to provide a buffer against the inconsistent supply and pricing disputes that have historically challenged Nigerian refiners.