Edo Refinery and Petrochemicals Company Limited have placed an order for 200,000 barrels of crude from Oza Oil Field operated by Decklar Resources Inc and Millenium Oil and Gas Company.
It said this was in line with the Edo State Governor, Godwin Obaseki’s drive to transform the state into a major investment and industrial haven in the country.
Recall that Edo Refinery was established with the injection of N700m as redeemable preference shares (investment) from the Obaseki-led government through a memorandum of understanding with a Chinese consortium led by Peiyang Chemical and Equipment Company of China, and its Nigerian partners, Africa Infrastructure Partners Limited.
The 6,000 barrels per day refinery had been completed and had since commenced operation with its main output being diesel, Naphtha and Low Pour Fuel Oil.
In a statement, Decklar Resources Inc. and its co-venturer, Millenium Oil & Gas Company Limited, said they were pleased to announce that trucking of crude oil from the Oza Oil Field to the Edo Refinery and Petrochemicals Company Limited had continued steadily, and total deliveries had now exceeded 27,000 barrels of crude oil under the 30,000 bbls crude sale agreement.
It added that it had also commenced sale of products to the second modular refinery operating in Edo State attracted by the Obaseki-led government, Duport Midstream Company Limited.
Edo Refinery to begin operation August
According to the statement, “Trucking of crude oil also commenced in late March to the Duport refinery in Edo State, with over 3,700 bbls delivered to date.
“Under the sale and purchase agreement with Duport Midstream Company Limited, Decklar and Millenium will initially deliver 5,000 bbls to the Duport refinery, followed by a minimum of 2,500 bbls per month thereafter.”
Noting that they had increased supply to Edo Refinery, the companies said, “The terms of the 30,000 bbls agreement include an invoicing and payment cycle that is triggered as each 5,000 bbls batch is delivered and offloaded at the refinery.
“Invoices for 25,000 bbls have been issued, and total deliveries under this contract are nearing the final 5,000 bbls batch. This cycle will continue after the completion of deliveries under the 30,000 bbls contract, as Decklar and Millenium recently signed a sale and purchase agreement with ERPC for delivery of an additional of 200,000 bbls to ERPC’s facility.”
Chief Executive Officer of Decklar Resources, Sanmi Famuyide, said, “Crude oil deliveries to ERPC and to our new customer, DMCL, have been continuing steadily in a routine manner. This has provided consistent cash flow and enabled Decklar and Millenium to deliver and sell substantial volumes of crude oil to both customers. We have delivered a total of over 37,000 bbls to ERPC’s Edo refinery and have delivered over 3,700 bbls to DMCL’s refinery under their initial 5,000 bbls contract.”