Dangote Exploration Assets Limited may commence the production of its own oil, partly to supply a $10 billion, 650,000 barrels of crude a day, through a refinery being built near Lagos, within a few months.
The Group Executive Director of Dangote Exploration Assets Limited, Edwin Devakumar, who revealed this to news men recently said it aims to pump around 20,000 barrels a day from two shallow-water blocks, known as OML 71 and 72, located in the Niger Delta river in southeastern Nigeria.
Devakumar noted that his firm will continue to invest in upstream, adding that Dangote Industry may look for more blocks to produce up to 250,000 barrels a day.
According to him,’’ It’s where the majority of our cash flow from the refinery will go to. We’ll focus on that after we start the refinery.”
The Tide learnt that FIRST E&P in conjunction with Dangote Exploration Assets Limited and Dansa Energy Resources Limited (via a joint venture – West African Exploration and Production Company Limited (WAEP) acquired a 45% participating interest in OML 71 and OML 72 from Shell Petroleum and Development Company of Nigeria Limited, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited (the “SPDC JV”)
In another development, the Nigerian Independent Petroleum Company (NIPCO) Plc has stepped up its campaign to create awareness on the benefits of switching to gas to reduce environmental impact.
The firm revealed this while conducting minister of state petroleum and Resources at its pavilion Exhibition of the NOG last week in Abuja.