Dangote's Oil Company Set To Begin Oil Production As Refinery Announces New Petrol Price

• WAEP set a two-year timeline for first sustained oil production from its Nigerian assets at an energy conference in Ghana
• The company signed contracts for three jack-up rigs, with drilling expected to start in December across OML 71 and OML 72
• WAEP plans to supply crude directly to the Dangote Petroleum Refinery, which co-owns the assets

West Africa Exploration and Production Company (WAEP), the upstream arm of Dangote Group, has announced a target to achieve first sustained oil production from its Nigerian assets within two years, as it moves into the execution phase of its development plan.

WAEP Managing Director and CEO, Olajumoke Cecilia Ajayi, revealed the timeline at the AOW Energy Conference in Accra, Ghana, where she spoke on a panel examining the future of African-owned operators in the oil and gas sector.

The company holds interests in Oil Mining Leases (OMLs) 71 and 72, two brownfield assets formerly operated by Shell. Together, the blocks are estimated to contain more than 1.6 billion barrels of oil in place and approximately 1.9 trillion cubic feet of gas.

WAEP's Phased Production Plan

Rather than waiting for a full-scale redevelopment, WAEP intends to restart existing wells first to generate early cash flow, which will then fund broader field development, DailyTrust reports.

Ajayi said:

"We are prioritising brownfield restart to get to first oil quickly. The idea is not to wait five years. We want to prove the concept, prove the cash flow, and then scale."

Contracts have already been signed for three jack-up rigs, with drilling scheduled to begin in December. Six field development plan studies are currently under way to support a series of back-to-back development campaigns across the portfolio.

Ajayi also outlined plans to monetise the gas reserves in both blocks, targeting Nigeria's domestic power generation and industrial sectors as priority markets, The Nation reports.

Dangote Refinery as a Ready Crude Market

A key element of WAEP's commercial strategy is the direct link between its upstream production and the Dangote Petroleum Refinery and Petrochemicals, Africa's largest refinery, which is a co-owner of the assets.

Ajayi said:

"One of the shareholders, one of the partners on this asset, is the owner of the largest refinery in Africa, Dangote Petroleum Refinery and Petrochemicals. So the oil would definitely be needed by the refinery."

The arrangement positions WAEP to supply crude locally rather than exporting it, supporting Nigeria's broader push to retain more value from its oil resources within the country.

WAEP is also working to establish a dedicated crude evacuation terminal that could serve both its own production needs and those of other operators seeking to aggregate and move crude.

Building Technical Capacity

Ajayi stressed that turning asset ownership into sustained production requires more than licences and reserves.

Technical skill, capital, and operational discipline are equally critical, she said.

She said:

"We need to put round pegs in round holes. We need to put the right skill and competence in the different units."

He added that WAEP had been building its organisational capacity ahead of the next development phase.

Dangote sells petrol at new price

Earlier, Legit.ng reported that Dangote Petroleum Refinery has raised the pump price of Premium Motor Spirit (PMS) by a total of N100 per litre across three separate increases carried out within eight days, pushing its gantry price from N1,165 to N1,265 per litre.

The first adjustment took effect on August 21, when the refinery moved its gantry price from N1,165 to N1,185 per litre.

Five days later, on August 26, a further N15 increase brought the price to N1,200 per litre.