Edo modular refinery commences operation

The Edo modular refinery has commenced operation at its 6,000 barrels per day (bpd) plant in Ologbo, Ikpoba Okha local government area of the state.

The modular refinery is a fully funded project undertaken by AIPCC Energy Limited in a joint venture between AFCOM Oil & Gas and Peiyang Chemical Equipment Company of China.

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

The facility with its crude feedstock can produce 50 percent of diesel (500,000 litres), 25 percent of naphtha (300,000 litres) and 200,000 litres of Low Pour Fuel Oil (LPFO).

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 company, in a statement issued on Tuesday, January 24, stated that it would complete the phase II of the project in March 2023.

It added that this move will increase the production of crude oil to 21,000bpd.

The refinery is one of the two privately-owned refineries in the state, alongside the Duport Refinery, which is operated by Duport Midstream Company Limited.

The two refineries were attracted to the state on the back of nuanced reforms by the administration of the state governor, Godwin Obaseki, to boost investment inflow and drive industrialisation in the state.

The delivery of 10,000 barrels of crude (bbls) from Decklar and Millenium to the privately-owned modular refinery was conducted under the terms of the sales agreement of which an invoice has been issued and payment received.

The initial agreement provided for deliveries totalling 10,000 bbls, and a new agreement is being negotiated for the delivery of an additional 30,000 bbls.

According to the statement, the parties are also in discussions to potentially agree upon a monthly minimum quantity of barrels of Oza Oil Field crude to be sold to the refinery going forward.

Decklar, a Canadian producer of Nigerian marginal oil fields, stated that, “Decklar and Millenium have received payment on the first invoice for delivered crude under the 10,000 bbls sale agreement with Edo modular refinery.”

It noted that it had issued an invoice for delivery of the first 5,000 barrels of crude oil (bbls) as part of the 30,000 bbls sale agreement with the modular refinery, with payment expected in approximately three weeks.

“With continued production and delivery of crude oil, it is expected that regular billing and receipts of sales proceeds will occur,’’ Decklar said.

According to Decklar, trucking of oil from the Oza Field is ongoing to the refinery facility.

Declar noted that, “Ten trucks are currently in operation and are capable of delivering approximately 2,500 bbls every four days.

“Additional trucks are expected to be contracted over the next few weeks to increase delivery capacity.”