Page 14 - DMEA Week 04 2023

DMEA NEWS IN BRIEF DMEA

for delivery of the first 5,000 bbls as part
of the 30,000 bbl 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
operations slated to start in March 2023. The facility with its feedstock can produce are capable of delivering approximately 2,500
Tunde Adelakun, a senior energy lawyer 50 per cent of diesel (500,000 litres), 25 bbls every four days. Additional trucks are
with Aflex Energy Nigeria, accused the percent of naphtha (300,000 litres) and 20 per expected to be contracted over the next few
government of paying lip service to activities cent of Low Pour Fuel Oil (LPFO) (200,000) weeks to increase delivery capacity,” Decklar
of modular refineries. litres. said.
“Government’s rhetoric about modular The company got its first supply of THIS DAY
refineries is beginning to sound cliche. There 10,000 barrels of crude feedstock from
is no structural framework for effective crude Decklar Resources Inc. and its co-venturer, Dangote refinery to
oil supply for modular refineries; everyone is Millennium Oil & Gas Company Limited,
talking about Dangote Refinery,” Adelakun which operates the Oza Oil Field. commission before end of
said. “It’s difficult to attract investments The refinery was developed by Edo
for expansion when operators of modular Refinery and Petrochemical Company May
refineries wait endlessly for regulatory Limited (ERPC) with support from the state
attention.” government through a Memorandum of Africa’s richest man Aliko Dangote’s Dangote
Data sourced from Africa Oil+Gas Report, Understanding (MoU). Industries Limited has announced that
an energy intelligence publication, showed The company, in a statement yesterday, Nigeria’s President Muhammadu Buhari will
the newly constructed 10,000bpd capacity stated that it would complete the phase II officially unveil its $19-billion petrochemical
Omsa Pillar Astex Company Refinery, located of the project in March, 2023, which adds complex, the Dangote Oil Refinery, before the
in Kwale, in Nigeria’s Delta State, has been 12,000bpd capacity to cap production at end of his term in May 2023.
unable to get sufficient crude oil to refine 21,000bpd. The announcement comes nearly a week
as the company doesn’t operate its own oil Edo Modular Refinery is the first of after multiple media outlets reported on the
producing field. two refinery projects in the state, alongside project’s impending launch by Buhari during
“The refinery is sitting idle three months the Duport Refinery, which is operated by his visit to Lagos.
after the regulator signed off on its licence to Duport Midstream Company Limited. The The group highlighted that the
operate,” the report said. two modular refineries were attracted into petrochemical complex was not included
Documents sighted by the publication the state on the back of nuanced reforms in the president’s list of projects set to be
showed the facility has passed all reliability by the Governor Godwin Obaseki-led commissioned, which includes a $450-million
tests and won the approval of the Nigeria administration to boost investment inflow lubricant plant linked to prominent
Midstream and Downstream Petroleum and drive industrialisation in the state. businessman Sayyu Dantata, Dangote’s cousin,
Regulatory Authority (NMDPRA) The delivery of 10,000 barrels of crude the Lekki Deep Sea Port, a 32-metric-tonne
after a refinery and an effective refinery from Decklar and Millenium to Edo Refinery Lagos Rice Mill in Imota, and the Blue Line
commissioning exercise. was conducted under the terms of the sales Rail (Phase 1), among others.
“It’s difficult to do refinery business agreement of which an invoice has been It also reconfirmed that the commissioning
with the way the regulators are currently issued and payment received. of the refinery will take place prior to Buhari’s
operating,” Adelakun said. The initial agreement provided for departure from office and the public will be
Last September, the promoters of modular deliveries totaling 10,000 bbls, and a new informed and invited to witness this historic
refineries under the aegis of Oil Refiners agreement is being negotiated for the delivery event.
Association of Nigeria (CORAN) met with of an additional 30,000 bbls. The Dangote Oil Refinery will boast
chiefs of the NMDPRA to vent their anger According to the statement, the parties are an impressive capacity of 540,000 barrels
and frustration. also in discussions to potentially agree upon a of Nigerian oil per day in its first phase of
BUSINESSDAY monthly minimum quantity of barrels of Oza operation, with plans to expand to 650,000
Oil Field crude to be sold to the refinery going barrels per day in the future.
Edo refinery begins forward. metric tonnes of jet fuel per day, 65 million
The complex will also produce 4 million
“Decklar and Millenium have received
production payment on the first invoice for delivered liters of premium motor spirits (petrol), 15
crude under the 10,000 bbls sale agreement
million liters of diesel, and 3 billion standard
The Edo State government-backed Edo with Edo refinery,” Decklar, a Canadian cubic feet of gas.
Modular Refinery has begun production at its producer of Nigerian marginal oil fields was GHANAWEB
6,000bpd plant in Ologbo, Ikpoba Okha Local quoted to have said.
Government Area. It noted it had also issued an invoice

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