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Obaseki reforms: Edo Refinery orders 150,000 barrels of crude to meet rising demand for products in downstream oil sector

11 Mar 2023

industrial reform, refinery

The Edo Refinery has placed an order for the supply of 150,000 barrels of crude from Decklar Resources Inc and Millennium Oil and Gas Company to meet the demand of its growing clientele base, as demand for its products spike in the downstream sector of Nigeria’s oil industry.

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

The crude is sourced from Oza Oil Field, which is operated by Decklar Resources Inc and Millenium Oil and Gas Company Limited.

The Edo Refinery is a 6,000bpd capacity plant, which is being expanded to 21,000bpd. The facility with its feedstock can produce 50 per cent of diesel (500,000 litres), 25 percent of naphtha (300,000 litres) and 20 percent of Low Pour Fuel Oil (LPFO) (200,000) litres.

Chief Executive Officer (CEO) of Decklar Resources Inc., Sanmi Famuyide, in a statement, said “Decklar and Millenium are at an advanced stage of executing a new 150,000 bbls crude oil sale and purchase agreement with ERPC, which is expected to include terms for invoicing and payment after the delivery of each cargo of 10,000 bbls of crude oil.”

He added: “We are very pleased that payments for the sale of crude oil from the Oza field continue to be received. Deliveries to ERPC in Edo State are ongoing on a consistent basis, and the anticipated doubling of the contracted truck fleet is expected to enable the Company and our co-venturer Millenium to increase the volume and consistency of deliveries of oil to market.

“The additional trucking capacity is also expected to create opportunities for additional delivery of crude oil to other potential customers in the near term.”

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