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Edo Refinery starts operations and aims to  increase capacity To 21,000bpd

Edo Refinery starts operations and aims to  increase capacity To 21,000bpd

The 6,000 BPD plant of the Edo Modular Refinery, which is supported by the Edo State government, has started operations in Ologbo, Ikpoba Okha Local Government Area.

The facility is anticipated to produce 500,000 liters of diesel, 300,000 liters of naphtha, and 200,000 liters of low-pour fuel oil (LPFO) from its feedstock.

Decklar Resources Inc., which operates the Oza Oil Field, and its joint venture partner, Millennium Oil & Gas Firm Limited, provided the company with its initial supply of 10,000 barrels of crude feedstock.

A Memorandum of Understanding between the state government and Edo Refinery and Petrochemical Company Limited (ERPC) allowed for the development of the refinery (MoU).

The company stated in a statement that phase II of the project, which “adds 12,000bpd capacity to limit production at 21,000bpd,” will be finished in March 2023.

Along with the Duport Refinery, which is run by Duport Midstream Company Limited, Edo Modular Refinery is the first of two refinery projects in the state.

The two modular refineries were drawn to the state as a result of the Governor Godwin Obaseki-led administration’s subtle changes to increase investment inflow and promote industrialization.

Under the provisions of the sales agreement for which an invoice was made and payment was received, 10,000 barrels of crude oil were delivered from Decklar and Millenium to Edo Refinery.

A new deal for the delivery of an additional 30,000 bbls is currently being negotiated. The original agreement was for deliveries totaling 10,000 bbls.

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A minimum monthly volume of barrels of Oza Oil Field oil to be sold to the refinery is reportedly another topic of negotiation between the parties.

The Canadian producer of marginal oil reserves in Nigeria, Decklar, was also mentioned in the report as saying, “Decklar and Millenium have received payment on the first invoice for supplied crude under the 10,000bbls selling agreement with Edo refinery.”

As part of the 30,000 barrel selling deal 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.

Decklar claims that oil is still being transported by truck from the Oza Field to the Edo refinery in Nigeria’s Edo State.

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