- Dangote Adds Crude Oil Production to Growing Empire
Aliko Dangote, Africa’s richest man, will start crude oil production later this year from two assets he acquired from Royal Dutch Shell Plc in July, Devakumar Edwin, Executive Director, Dangote Group, stated.
He said the group is looking at the first phase of 20,000 barrels per day but their objective is to increase it to 100,000 barrels per day for the two assets in the next 12 to 15 months.
“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,” Edwin said. “If everything goes well, we can do that in 12 to 15 months because we are already doing the 3D seismic studies.”
Dangote is working with Malaysian and Chinese contractors on the project and has completed development for the Kalaekule field on its Oil Mining Lease 72 asset, according to Edwin. Also, work is expected to commence on undeveloped KI discovery on Block 71, a small shallow water asset in the southeastern Niger River Delta.
The group is expected to eventually use its crude oil production in Dangote’s 650,000 barrels per day oil refinery when the project is completed. The billionaire is not just building a refinery but also the entire value chain from raw materials to logistics, manufacturing, marketing and sales.