The logistics to match Nigeria’s refining growth

April 30, 2025

Shamsudeen Aminu Kofa, CEO of Red Star Oil & Gas, talks to The Energy Year about the company’s oil barging capabilities and its involvement with the Onne Port and Lekki Deep Sea Port. Red Star Oil & Gas is an integrated global oil and gas player operating across the energy sector value chain.

How would you describe your capabilities when it comes to crude oil barging services?
We play a key role in the midstream and offshore logistics in Nigeria. In general, we see a positive future for the Nigerian oil and gas sector. There is going to be an increase in production, even though now most of the production can only be evacuated by barge. We are one of the pioneers of barging in Nigeria.
Red Star Oil & Gas started with around 250 bpd of crude. Fast forward to today, we are evacuating around 50,000 bpd. In Nigeria the only way to evacuate crude right now is through barges, and this will continue until the government implements a new system of monitoring to keep the pipelines secured.

What are your plans for the 2024 bidding rounds?
We are taking part in the 2024 bidding rounds, and we hope that we are going to obtain a positive result from the regulators. We plan to acquire our own field, and with our capacity, we can do it without the need for partnerships.
We have been in the industry for eight years, and we have the required know-how. We have the financial models and financial capacity to improve the wells. Most wells need to increase their production, and we have already increased the production of some wells in the Niger Delta.

 

How are you involved with the Onne Port and the Lekki Deep Sea Port?
We oversee the Onne Port, working with the Nigerian Ports Authority. We oversee the movement of vessels in and out of the port and the pilotage of the area. We do the same for the Lekki Deep Sea Port. With the start of operations at the Dangote Refinery, we are doing volumes of almost five to six ships per day on average.
Now, with the production of PMS [premium motor spirit] at the Dangote Refinery, we are looking to increase capacity. We are working both with Dangote and the Nigerian Ports Authority to develop a strategy on how to improve the management of these vessels.

What is your assessment of the impacts of the Dangote Refinery in the oil and gas sector?
The development is quite impressive. Dangote is expected to produce about 650,000 bpd. In addition to that, Dangote will be receiving crude oil in naira. That is going to be a game changer because most of the time, if we are importing our product, we must source through forex, which is quite challenging in Nigeria. There are many advantages stemming from the Dangote Refinery for the local market and even the West African market.

What is the growth strategy for Red Star Oil & Gas?
The goal is for Red Star Oil & Gas to become a global conglomerate. Right now, we have our office in Dubai, where we are dealing with most of the crude oil that has been exported and imported. We are looking at opening another office in Europe because our marine activity is currently expanding.
We are looking at having our vessels go all over the world, not only West Africa. Our vessels are currently taking crude from South America to Africa, but we are looking at the bigger picture to make our marine logistics worldwide. Regardless of the region, if anyone is looking for vessels, they can contact Red Star, and we are ready to assist.

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