Benin, Nigeria – The Edo State government-backed Edo Modular Refinery has begun production at its 6,000bpd plant in Ologbo, Ikpoba Okha Local Government Area.
The facility, with its feedstock is expected to produce 50 percent of diesel (500,000 litres), 25 percent of naphtha (300,000 litres), and 20 percent of Low Pour Fuel Oil (LPFO) (200,000) litres, Daily Independent reports.
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.
In a statement, the company said it will complete the phase II of the project in March 2023, “which adds 12,000bpd capacity to cap production at 21,000bpd”.
Edo Modular Refinery is the first of two refinery projects in the state, alongside the Duport Refinery, which is operated by Duport Midstream Company Limited.
The two modular refineries were attracted into the state on the back of nuanced reforms by the Governor Godwin Obaseki-led administration to boost investment inflow and drive industrialisation in the state.
The delivery of 10,000 barrels of crude from Decklar and Millenium to Edo Refinery was conducted under the terms of the sales agreement of which an invoice has been issued and payment received.
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The initial agreement provided for deliveries totaling 10,000bbls, and a new agreement is being negotiated for the delivery of an additional 30,000bbls.
According to report, 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.
The report also quoted Decklar, a Canadian producer of Nigerian marginal oil fields, to have said, “Decklar and Millenium have received payment on the first invoice for delivered crude under the 10,000bbls sale agreement with Edo refinery.”
It noted it has also issued an invoice for delivery of the first 5,000bbls as part of the 30,000bbl sale agreement with the Edo 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 Edo refinery facility in Edo State, Nigeria.
“Ten trucks are currently in operation and are capable of delivering approximately 2,500bbls every four days. Additional trucks are expected to be contracted over the next few weeks to increase delivery capacity”, Decklar said.