₦airaland Forum

Dangote is currently seeking a floating production, storage and offloading vessel with a capacity of 650,000 barrels of crude.

By Channels Television.


Dangote Group is looking to start production at its two Nigerian oil assets in the fourth quarter of 2024, after enduring months of crude supply woes, a report by S&P Global Commodity Insights has said.

The report quoting company sources said Dangote is currently seeking a floating production, storage and offloading vessel with a capacity of 650,000 barrels of crude.

The company holds an 85% stake in West African E&P Venture, which in turn has a 45% working interest in the two blocks, alongside the state-owned Nigerian National Petroleum Company’s 55%.

The other stakeholder in West African E&P is Nigerian upstream player First E&P, which operates OMLs 71 and 72.

The licenses are located in the shallow water in the southeast of the troubled Niger Delta, just 22 km from the onshore Bonny terminal. They contain the Kalaekule and Koronama oilfields.

Discoveries were first made on the blocks in 1966, and Shell began production there two decades later. Output peaked at 21,000 b/d in 1999, before declining in 2003.

However, according to data from Commodity Insights, the fields still hold recoverable resources of almost 300 million barrels of oil and as much as 2.3 Tcf of natural gas.

Commodity Insights forecasts that production at the blocks could start in 2026, reaching 43,000 boe/d by 2036.


Supply woes

Dangote’s upstream activities are seldom discussed, but the imminent startup of production at OMLs 71 and 72 suggests the Dangote refinery could soon supplement its crude feedstock, after having faced months of crude supply issues.

The $20 billion facility came online in January, and started up its residue catalytic cracker in early September, allowing for high-volume gasoline production when the unit stabilises by as early as October, according to a company executive.

The refinery was designed to end Nigeria’s decades-long dependence on imported refined products. To date, it has produced volumes of petrol, diesel, jet fuel and naphtha, for domestic use and export.

However, the plant struggled to obtain sufficient Nigerian crude in its early months, forcing it to import large volumes of WTI Midland crude from the US, and sparking a bitter public row between the NNPC, international oil companies, Dangote and Nigeria’s upstream regulators.

The NNPCL, which was originally expected to supply Dangote with 300,000 b/d of crude in return for a 20% stake in the project, ultimately saw its stake reduced to 7.2%.

Data from S&P Global Commodities at Sea shows Dangote took just under 200,000 b/d of Nigerian crude in September. It has not imported any US crude since mid-July, CAS data shows.

Speaker of the House of Reps, Tajudeen Abbas, President of Dangote Group, Aliko Dangote and others visit the Dangote Petroleum Refinery in Lagos.

Nevertheless, Dangote has floated the possibility of acquiring crude from other oil producers, including Libya, Senegal and even Brazil, with company sources warning that NNPC could only be able to fulfil 60% of its crude demand.

Commodity Insights analysts expect the refinery to take until around 2027 to reach steady-state production, at which point it should yield some 327,000 b/d of petrol.

https://www.channelstv.com/2024/10/12/dangote-to-begin-crude-oil-production-soon-says-report/

Huh

Na wa

Dangote, the monopolist, has become more of a bigger issue to Nigerians than the FG.


When the policy affected him weeks ago, he was bleating all over the internet and giving side talks of how the Malta refinery owners refuse to give him raw materials!

They have called him to the kitchen and served him roasted agreements with benefits and he's lost his voice now! This is the same Dangote that has been given raw materials but has been conditioned to scratch their back while they scratch his.., at the detriment of Nigerians!

A monopolists' war!


All of a sudden, Dangote can no longer announce the price he sells! The NNPC are the ones announcing the price for Dangote! It's been denials upon denials!


Another plot to keep increasing the price of fuel!


How do you mean to tell Nigerians that the cost of refining fuel at home is more expensive than the imported fuel!

Of course, that is why they padlocked Dangote's mouth so he either choose to earn more money and shut up, or never be givien raw materials again! This way, the agenda is still active!

This is the same fuel sold at ₦165/litre a year ago...with subsidy! And it's still sold with subsidy now, but at a higher cost!


Dangoate, Malta refinery owners, Opolo eyes, eFF-GEE, NNPSee, are the biggest fraud!

And so?

So the next lie now will be to tell Nigerians to expect cheaper petrol once DANGOTE begins his own crude oil exploration...

All of us are MAD in this country...

This is what Dangote should have first sorted out, long before the refinery became operational. No manufacturing company can survive without good access to raw materials.

Great development

Noted.

Thought as much. Has been expecting this from him.


Those pple above what network do you use.

Dangote matter don tire me

Yet to see how this man is an advantage to Nigerians 😡😡

That's ks his problem. because it's all about enrichment for him, his cronies and family.

I don't even know what's going on again in this country. Nothing is working at all and we all keep on with the system. Dangote as well have no bearing of what's going on with him. Things are already getting out of hands completely.

..dangote that they said could not refine 400liters of fuel for local consumption..is set to excavate crude oil..

..before he was importing ship loads of crude..only allah knows from where..All of a sudden the news came ..Dangote could no longer access crude oil..

..how much is Dangote selling to the government abi na private national Corporation abi limited..nobody knows..

..now we are again told that he is into excravating..

..BATists..what sayeth thou..?

😀

By the time Dangote finish with Nigeria 🇳🇬, we will all understand . His expensive cement industry is the best example

🤣😮🤣🤣🤣

So, what should we do with this news?

Will the Dangote crude oil production safe Nigerians from this current hardship?

Just as his refinary couldn't help to reduce fuel price, his crude oil will not benefit Nigerians either.

The people ruling Nigeria are just greedy and selfish, so no individual business can help either.

nonsense stories,
we are tired of hearing stupid news just to keep us having hope

Sth wey no go alleviate the sufferings of the common man

Why are they telling us

Dangote this Dangote that, Okay ooo Owners of Nigeria another news is ready

Even dagonta is tired of this lies,




My children let go out of here

Soon sonner soonest......Nigeria progress is soon

Good luck to him. We are yet to see the benefit of his refinery.

All the best to him.

Might be thinking is goodnews for Nigerians until it start and nothing changes.... no impact in the economy

Are they producing Crude oil in your village?

Let continue handling our economy to the hand of a single person

Milking Nigerias’ stupidity and clueless governance!

Ok

Good news.

We go dey hear word from some people oo

Dangote is now above Nigeria.. Nigeria is right below him, we now depend on Dangote for survival.... Tinubu well done sir👍😁

If that will make fuel drop to #200 PR liter then no problem