Dangote Group is looking to acquire a floating production, storage, and offloading vessel with a capacity of 650,000 barrels to support its upcoming oil production initiatives.
This move aligns with their broader strategy to enhance oil production capabilities and strengthen their position in the energy sector.
According to a company source, Dangote Group plans to commence production at its two Niger Delta upstream projects in Oil Mining Leases 71 and 72 at approximately 20,000 barrels per day (b/d).
This initial production level is expected to increase further in the first quarter of 2025.
S&P Global Commodity Insights reports that Dangote Group is actively seeking an FPSO vessel to enhance its refinery operations by producing and storing crude oil.
The company holds an 85% stake in West African E&P Venture, which possesses a 45% working interest in the two blocks in question, while the Nigerian National Petroleum Company holds the remaining 55%.
Additionally, First E&P, a Nigerian upstream player, operates Oil Mining Leases (OMLs) 71 and 72.
This collaboration positions Dangote to strengthen its presence in the oil sector while supporting its refinery expansion.
The licenses for OMLs 71 and 72 are situated in shallow waters in the southeastern Niger Delta, just 22 km from the onshore Bonny terminal.
They include the Kalaekule and Koronama oilfields, where initial discoveries were made in 1966, and Shell began production in the late 1980s. Production peaked at 21,000 b/d in 1999 but saw a decline starting in 2003.
Global Commodity Insights said that the fields hold recoverable resources of almost 300 million barrels of oil and 2.3 Trillion Cubic Feet, Tcf, of natural gas, adding that production could start in 2026, reaching 43,000 barrels of oil equivalent, boe/d by 2036.
It maintained that the imminent startup of production at OMLs 71 and 72 suggests the Dangote refinery could supplement its crude feedstock, after having faced months of crude supply issues.
