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    Wednesday, January 25, 2023

    Edo Refinery Begins Production, to Expand Capacity to 21,000bpd

    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 can produce 50 per cent of diesel (500,000 litres), 25 percent of naphtha (300,000 litres) and 20 per cent of Low Pour Fuel Oil (LPFO) (200,000) litres.

    The company, in a statement yesterday, stated that it would complete the phase II of the project in March, 2023, which adds 12,000bpd capacity to cap production at 21,000bpd.

    The 6,000 barrel per day (bpd) capacity Edo Refinery and Petrochemicals, a private refinery project that enjoys the support of the Federal and State government, have received delivery of crude feedstock from Decklar Resources Inc. and its co-venturer Millenium Oil & Gas Company Limited.

    The delivery 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.

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

    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 and Millenium have received payment on the first invoice for delivered crude under the 10,000 bbls sale agreement with Edo refinery,” Decklar, a Canadian producer of Nigerian marginal oil fields said in a note seen by BusinessDay.

    It noted it has also issued an invoice for delivery of the first 5,000 bbls as part of the 30,000 bbl sale agreement with 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 2,500 bbls every four days. Additional trucks are expected to be contracted over the next few weeks to increase delivery capacity,” Decklar said.

    Data from African Oil & Gas intelligence report showed Edo Refinery is the third, fully commissioned, legitimate modular refinery with clear line of sight to feedstock in Nigeria, after the Niger Delta E&P owned 11,000 bpd refinery on the Ogbele field in Rivers State and Waltersmith Refining & Petrochemical Company Limited (WRPC) owned 5,000 bpd in Ibigwe, Imo State.

    Constructed by AIPCC Energy Limited and Peiyang Chemical Equipment Company Limited, the Edo refinery is currently a 6, 000 bpd modular refinery located in Ikpoba-Okha LGA, Edo State; in the Southern Niger Delta region of Nigeria.

    The owners say the project is executed in two trains of 1,000bpd; and 5,000 bpd selling refined products such as Diesel, Naphtha and Low Pour Fuel Oil (LPFO).

    Edo Refinery’s statement notes that work on the Phase 2 (15,000 bpd) has already commenced, with full operations slated to start in March 2023.

    Experts say a growing number of mini refineries will finally help wean Africa’s biggest economy off foreign fuel.

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