Home News Deals and Investment Dangote to Start 100,000 Barrels of Oil Production

Dangote to Start 100,000 Barrels of Oil Production

Dangote oil production

Aliko Dangote, a business mogul and the richest man in Africa, has revealed that he would start oil production, with 100,000 barrels daily, from two assets that he acquired from Royal Dutch Shell Plc come July this year.

He said the prospect would add a new revenue stream to his rapidly growing business empire.

Dangote Industries Ltd’s Group Executive Director, Devakumar Edwin, told an online news network yesterday that his boss is working with Chinese and Malaysian contractors and has concluded a development strategy for the Kalaekule field on his Oil Mining Lease 72 asset.

He added that work will afterwards proceed to an undeveloped KI discovery on Block 71, a small shallow water asset in south-eastern Niger River delta.

“We are looking at the first phase of 20,000 barrels a day but our objective is to expand it to 100,000 barrels a day for the two blocks. If everything goes well, we can do that in 12 to 15 months because we are already doing the 3D seismic studies,” Edwin said.

Production from the fields is expected to feed Mr. Dangote’s privately built refinery which is expected to start work early 2021, with 650,000 barrel a day.

The refinery is projected to double Nigeria’s refining capacity and help meet the rising demand for fuels while saving costs.

Edwin disclosed that the Dangote refinery oil production, plans to help end Nigeria’s reliance on imported fuel. The plant will reach mechanical completion in December and full operations is expected to start by the middle of 2021.

This new source of income will further expand Dangote’s business empire, having already established himself in cement, flour and sugar industries.

Dangote’s net worth is around $15.6 billion, much of which he got from his 85 per cent stake in the publicly-traded Dangote Cement.

He holds the shares in the company directly and through his conglomerate, Dangote Industries.

READ ALSO: Africa’s Largest Oil Facility – Dangote Refinery Nears Completion

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