Dangote Group is seeking to begin manufacturing at its two Nigerian oil property within the fourth quarter of 2024, after enduring months of crude provide woes, a report by S&P International Commodity Insights has mentioned.
The report quoting firm sources mentioned Dangote is at the moment searching for a Floating Manufacturing Storage and Offloading (FPSO) vessel with a capability of 650,000 barrels of crude.
The corporate holds an 85% stake in West African E&P Enterprise, which in flip has a forty five% working curiosity within the two blocks, alongside the state-owned Nigerian Nationwide Petroleum Firm’s 55%.
The opposite stakeholder in West African E&P is Nigerian upstream participant First E&P, which operates OMLs 71 and 72.
The licenses are situated within the shallow water within the southeast of the troubled Niger Delta, simply 22 km from the onshore Bonny terminal. They comprise the Kalaekule and Koronama oilfields.
Discoveries had been first made on the blocks in 1966, and Shell started manufacturing there twenty years later. Output peaked at 21,000 b/d in 1999, earlier than declining in 2003.
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Nonetheless, in accordance with knowledge from Commodity Insights, the fields nonetheless maintain recoverable assets of just about 300 million barrels of oil and as a lot as 2.3 Tcf of pure gasoline.
Commodity Insights forecasts that manufacturing on the blocks may begin in 2026, reaching 43,000 boe/d by 2036.
Provide woes
Dangote’s upstream actions are seldom mentioned, however the imminent startup of manufacturing at OMLs 71 and 72 suggests the Dangote refinery may quickly complement its crude feedstock, after having confronted months of crude provide points.
The $20 billion facility got here on-line in January, and began up its residue catalytic cracker in early September, permitting for high-volume gasoline manufacturing when the unit stabilises by as early as October, in accordance with an organization government.
The refinery was designed to finish Nigeria’s decades-long dependence on imported refined merchandise. Thus far, it has produced volumes of petrol, diesel, jet gasoline and naphtha, for home use and export.
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Nonetheless, the plant struggled to acquire ample Nigerian crude in its early months, forcing it to import giant volumes of WTI Midland crude from the US, and sparking a bitter public row between the NNPC, worldwide oil firms, Dangote and Nigeria’s upstream regulators.
The NNPCL, which was initially anticipated to produce Dangote with 300,000 b/d of crude in return for a 20% stake within the undertaking, in the end noticed its stake lowered to 7.2%.
Information from S&P International Commodities at Sea reveals Dangote took just below 200,000 b/d of Nigerian crude in September. It has not imported any US crude since mid-July, CAS knowledge reveals.
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However, Dangote has floated the potential of buying crude from different oil producers, together with Libya, Senegal and even Brazil, with firm sources warning that NNPC may solely be capable to fulfil 60% of its crude demand.
Commodity Insights analysts count on the refinery to take till round 2027 to achieve steady-state manufacturing, at which level it ought to yield some 327,000 b/d of petrol.
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