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Aradel targets 2027 petrol production as revenue hits ₦2.49tr – EnviroNews
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Aradel Holdings Plc has announced plans to commence gasoline production at its 11,000-barrel-per-day modular refinery in 2027, as Nigeria’s deregulated downstream petroleum market continues to improve the commercial outlook for domestic refining.
The company’s refining business manager, Temitayo Ogunbanjo, said the removal of petrol subsidy and the liberalisation of the fuel market had created a more commercially viable environment for Aradel to add gasoline to its refinery product slate.
The refinery currently produces kerosene, diesel, gas oil and naphtha, while the company is evaluating an expansion of its refining capacity, including options for securing additional crude feedstock and strengthening export logistics.
The planned gasoline production comes against the backdrop of a strong financial and operational performance by Aradel in the first half of 2026.
The company recorded ₦2.49 trillion in revenue during the period, supported by a substantial increase in upstream oil and gas production and improving refinery operations.
Aradel’s average daily crude oil production surged by 258 per cent to 55,600 barrels per day in the first half of 2026, compared with 15,500 barrels per day recorded in the corresponding period of 2025.
Gas production posted an even more dramatic increase, rising by 1,121 per cent to 503.2 million standard cubic feet per day, from 41.2 million standard cubic feet per day a year earlier.
The company attributed the sharp growth in gas production largely to improved pipeline availability and sustained demand from customers.
Despite the stronger upstream performance, Aradel’s refined products output declined during the six-month period. The company produced 126.2 million litres of refined products, representing a 22 per cent decline from 161.4 million litres produced in the first half of 2025.
The decline was attributed mainly to constrained crude supply and unplanned downtime experienced during the first quarter.
However, refinery performance improved significantly in the second quarter, with refined products output rising to 67.5 million litres, 15 per cent higher than the 58.7 million litres recorded in the first quarter.
Ogunbanjo said the company was also assessing opportunities in aviation fuel, which has become an increasingly important export product, particularly into European markets.
Industry observers say the planned gasoline production could strengthen Aradel’s downstream earnings by allowing the company to capture more value from its crude resources while responding to Nigeria’s growing domestic fuel demand.
Nigeria’s removal of petrol subsidy in 2023 ended years of government price controls and created a market-driven pricing environment. For domestic refiners such as Aradel, the policy shift has improved the economics of producing petroleum products locally.
With crude production, gas output and revenue all recording significant growth, Aradel’s planned gasoline production represents another step in its strategy of integrating its upstream and downstream operations and strengthening its position in Nigeria’s evolving energy market.
