DANGOTE TO GO INTO OIL EXPLORATION AND PRODUCTION IN 2025

Aiming to achieve a significant milestone by refining oil in Nigeria after decades, the Nigerian industrialist Aliko Dangote is now shifting his focus to crude oil exploration. Originally planned for Q4 2024, Dangote's crude production is now scheduled to commence in 2025.

ALIKO, DANGOTE
(Source: crimefightersng.com)

The decision to begin oil exploration follows a two-month dispute over crude supply between Dangote and Nigerian authorities. According to a report by S&P Global Commodity Insights, Dangote aims to start oil production by 2025 at two properties in the southern state of Delta, Nigeria.

“The company source said production at the company’s two Niger Delta upstream projects in Oil Mining Leases 71 and 72 would start at around 20,000 bpd, before ramping up further in the first quarter of 2025,” the report revealed.

 The report earlier revealed that the launch date was intended for Q4 2024, however, the date was revised.

According to the Punch, this information was confirmed by a senior official at the Dangote refinery on Saturday as he responded to the report by S&P Global Commodity Insights.

“Yes, I saw the S&P report; our company is truly going to start crude oil production to support the refinery, but it is going to start in the first quarter of 2025,” the senior official relayed.

The distribution of refined petrol from the Dangote refinery has faced numerous delays due to a heated dispute between the refinery and the government regarding the sale of crude oil.

Accusations surfaced that the Nigerian National Petroleum Company Limited (NNPCL) hindered Dangote's access to locally produced petroleum. Allegations included selling oil above market prices, pricing in US dollars instead of Naira, and claims of crude unavailability.

Consequently, the Dangote refinery had to procure oil from the international market, including Brazil and the United States, at significantly higher costs.

In response to these challenges, Dangote, as reported, opted to initiate crude production at its two upstream projects in Oil Mining Leases 71 and 72 in the Niger Delta. Initially targeting around 20,000 barrels per day, production is slated to ramp up further in the first quarter of 2025. 

Furthermore, Dangote is actively seeking a floating production, storage, and offloading (FPSO) vessel with a capacity to transport 650,000 barrels of petroleum.

Source: Business Insider


BLACK GOLD BULLETIN...

...where oil minds  unite

Comments

Post a Comment

Popular posts from this blog

SPRINGFIELD vs PETRACO ALLEGATIONS: THE DETAILS

Image
Swiss-based Petraco Oil Company SA has filed a formal petition with Ghana’s Economic and Organised Crime Office (EOCO), alleging that Springfield Exploration & Production Limited , GMP Energy Limited , and senior executives— Kevin Okyere , Geena Malkani Punjabi , and Emmanuel Ansah Bernasko —orchestrated a massive fraud scheme totaling roughly US $94 million ( theheraldghana.com ). Source: The Herald Ghana 1. Fraudulent Petroleum Payment Scheme (~US $30.8 million) In mid-2024, GMP Energy entered into a supply contract involving 35,000 tonnes of gasoline (valued at ~US $29.3 million), originally with EDURC DMCC, later assigned to Petraco ( theheraldghana.com ). BOST (Ghana’s Bulk Oil Storage & Transportation Company) paid GMP in full—but GMP allegedly concealed receipt of the funds, claiming non-payment and diverting money elsewhere ( theheraldghana.com ). Petraco says that during a 3 February 2025 meeting in Accra, Okyere and Malkani admitted to withholding the fu...
Read more

SHANDONG YULONG PETROCHEMICAL CO. LTD.: A COMPREHENSIVE OVERVIEW

Image
Shandong Yulong Petrochemical Co., Ltd. is a prominent player in China's petrochemical industry, operating a significant refining and chemical complex in Longkou, Yantai City, Shandong Province. Established with the aim of modernizing and consolidating the region's fragmented refining sector, the company has undertaken substantial projects to enhance China's petrochemical capabilities. ​  Home Hydrocarbon Processing +1 Hydrocarbon Processing +1 Source: Hydrocarbon Engineering Shandong Yulong Petrochemical is primarily owned by private aluminum smelter Nanshan Group (51%) and provincial government-backed Shandong Energy Group (46.1%), with the remaining shares held by two local firms.  ​ Hydrocarbon Processing +2 Sahm +2 Hydrocarbon Processing +2 Refining and Petrochemical Complex The company's flagship project is the Yulong Island Refining and Chemical Integration Project, a massive complex designed to process approximately 400,000 barrels per day (bpd) of crude oil an...
Read more

UNDERSTANDING THE SIGNIFICANT DROP IN FUEL PRICES IN GHANA IN 2025

Image
Since the beginning of 2025, fuel prices in Ghana have experienced a notable decline, prompting analysis and speculation within the energy sector. This shift, influenced by several interconnected factors, marks a significant development for consumers and stakeholders alike. Source: Ghanaian Times Global Oil Market Dynamics One primary driver of the drop in fuel prices can be attributed to the global oil market dynamics. Oil prices, which serve as a crucial benchmark for fuel pricing in Ghana, have exhibited a downward trend due to several key factors: OPEC+ Production Adjustments : The Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, have made strategic decisions regarding oil production levels. According to the International Energy Agency (IEA), OPEC+ countries have adjusted their production quotas, impacting global supply levels and subsequently influencing prices downward. Global Economic Conditions : The state of global econ...
Read more