Page 6 - AfrOil Week 27 2021

AfrOil COMMENTARY AfrOil

He continued: “If NNPC is run as a pure com- upstream and another for midstream/down-
mercial entity with no interference from the stream) will increase the bureaucratic process
government and can pay its cash calls, it should for getting approvals and extend project cycle
be an effective partner. But to get the full support time,” he told AfrOil. “This will be a bigger con-
from its JV partners, the new entity will need to cern for operators looking at integrated projects
lay out a plan on how it will manage all outstand- across the oil and gas value chain.”
ing liabilities.” Simm took a slightly different view, saying:
Additionally, he pointed to the provisions of “NNPC has really struggled to balance opera-
the PIB that called for the establishment of new tions across its integrated portfolio and recently
state agencies to regulate upstream, midstream resigned itself to being a bit-part player in the
and downstream operations in the oil and gas downstream. It is possible that this legislation
sector. will herald a new era for the country’s oil and gas
“A key concern for operators is [whether] sector, but small steps are needed. Admission of
the creation of new regulatory agencies (one for past failings is a good place to start.” ™

PIPELINES & TRANSPORT
Edo refinery to utilise Escravos supply line

NIGERIA THE governor of Nigeria’s Edo State said this they have certified the refinery.”
week that the Edo Modular Refinery at Ologbo The unit is being developed by Edo Refin-
would receive its crude oil feedstock from via a ery and Petrochemicals Company to process
pipeline that connects Escravos to Lagos. 6,000 barrels per day (bpd) of local crude and
Godwin Obaseki said that the crude sales produce refined products, including kerosene,
agreement is being finalised ahead of the begin- diesel, naphthalene and petrochemicals. The
ning of operations which are tabbed to kick off project company was launched by Obaseki’s Edo
in August. state administration which received N700mn
“What we have left now is to finalise the ($1.7mn) in renewable preference shares in the
crude oil sales contract; these facilities have to Edo Refinery and Petrochemical Company.
get a certain type of crude from the Escravos line The feedstock will be source from OML 111,
and that is being finalised. I hope that before the a licence area assigned to Nigerian Petroleum
end of August, we should start lifting products Development Co. (NPDC) near Benin City.
from these facilities,” he said. The refinery facility will produce 500,000 litres
The Escravos-Lagos Pipeline System (ELPS) of diesel, 300,000 litres of naphtha and 200,000
has a diameter of 36 inches (914 mm) and is litres of fuel oil.
around 340-km long. Its development has been being carried out
A week earlier, Obaseki said that the refinery in two phases, with the first intended to com-
was “ready to receive crude oil”. He said: “It is plete a 500 bpd demonstration refinery and the
ready to process and it is ready to deliver prod- second to construct a 5,000 bpd facility, with an
ucts. They have done the pre-commission with expansion project planned to raise capacity to
the Department of Petroleum Resources [DPR], 20,000 bpd. ™

The Edo refinery was completed in Q4-2020 (Image: AIPCC)

P6 www. NEWSBASE .com Week 27 07•July•2021