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Obaseki’s reforms: Edo Refinery begins production and sets to increase capacity to 21,000 bpd in March …major products include Diesel, Naphtha, LPFO

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Edo Modular Refinery

As shortage of petroleum products linger across various states of the federation, the ingenuity of the Edo State Governor, Mr. Godwin Obaseki, shines through the hard times, as the state government-backed Edo Modular Refinery has begun production at its 6,000bpd plant in Ologbo, Ikpoba Okha Local Government Area.

The facility has the ability to manufacture 500,000 liters of diesel, 300,000 liters of naphtha, and 200,000 liters of Low Pour Fuel Oil (LPFO) from its feedstock.

The company got its first supply of 10,000 barrels of crude feedstock from Decklar Resources Inc. and its co-venturer, Millennium Oil & Gas Company Limited, which operates the Oza Oil Field.

The refinery was established by Edo Refinery and Petrochemical Company Limited (ERPC) with cooperation from the state government through a Memorandum of Understanding (MoU).

According to a statement from the company, phase II of the project will be completed in March 2023, which adds 12,000 bpd of capacity to the project and raises the output maximum to 21,000 bpd.

The Duport Refinery, run by Duport Midstream Company Limited, is one of two refinery projects in the state, with the Edo Modular Refinery being the other. The two modular refineries were attracted to the state as a result of the Governor Godwin Obaseki-led administration’s careful reforms to boost investment inflow and promote industrialization in the state.

10,000 barrels of crude oil were delivered from Decklar and Millenium to the Edo Refinery in accordance with the terms of the sales contract, for which an invoice was issued and payment was received. The initial agreement provided for deliveries of 10,000 barrels, and a new arrangement—which would allow for deliveries of an additional 30,000 barrels—is currently being negotiated.

According to the report, the parties are reportedly also negotiating a potential monthly minimum quantity of barrels of crude from the Oza Oil Field to be sold to the refinery going forward.

According to the report, Canadian producer of Nigerian marginal oil fields Decklar and Millenium have received payment on the first invoice for supplied crude under the 10,000 bbls sale agreement with Edo refinery.

As part of the 30,000 barrel sale agreement with the Edo Refinery, it also indicated that it had sent an invoice for the first 5,000 barrels, with payment due in around three weeks.

“It is anticipated that regular billing and receipts of sales proceeds would occur with continuous crude oil production and delivery,” Decklar added.

According to Decklar, oil is still being transported by truck from the Oza Field to the Edo refinery in Edo State, Nigeria.

Decklar added, “Ten trucks are currently in operation, and each of them has the capacity to deliver approximately 2,500 barrels every four days. To enhance delivery capacity, more trucks are anticipated to be hired over the coming weeks.”

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