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Edo Refinery receives 15,000 barrels of crude oil from Oza oil field

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A total of 15,000 barrels of crude oil have been delivered to the Edo Refinery in 2024 for production from the Oza Oil Field, which is operated by Decklar Resources Inc. and Millenium Oil and Gas Company Limited.

According to a statement released by the Chief Executive Officer of Decklar Resources, Sanmi Famuyide, ongoing crude oil injection volumes are being maintained into the Trans Niger Pipeline for transportation to the Bonny Export Terminal.

The establishment of the refinery was made possible through a collaboration between the Edo Refinery and Petrochemical Company Limited and a Memorandum of Understanding between Governor Godwin Obaseki’s administration and AIPCC.

This plant, initially designed with a capacity of 6,000 barrels per day, is currently undergoing expansion to reach 21,000 barrels per day.

The refinery, operating with its designated feedstock, has the capability to produce 500,000 liters of diesel, 300,000 liters of Naphtha, and 200,000 liters of low-pour fuel oil.

Famuyide expressed, “We are excited to announce the significant achievement of commencing crude oil exports from the Oza Oil Field through the TNP and Bonny Export Terminal. Additionally, crude oil is still being transported to the local refinery customer in Edo State.

“Ensuring the seamless operation of the Trans Niger Pipeline connection between the Oza Oil Field and the Bonny Export Terminal, along with the consistent delivery and sales of crude oil to the local refinery, has enabled Decklar and Millenium to uphold a steady supply of crude oil to the market, thereby generating a continuous revenue stream.”

“The Company anticipates enhanced financial stability with the ongoing revenue which will support further field development endeavors, including re-entries and drilling initiatives. Moreover, the around 8,000 barrels of crude oil previously conveyed to the Forcados export terminal are projected to undergo vessel nomination in the upcoming weeks, followed by exports and sales successively.”

Regarding the sale of the crude oil from the field, Famuyide mentioned that it is transacted with Shell Western Supply and Trading Limited. He added, “The crude oil produced from the Oza Oil Field and dispatched through the TNP to the Bonny Export Terminal is sold to Shell Western Supply and Trading Limited (“Shell”). The crude oil stocked at the Oza Oil Field and the ongoing production into storage tanks from the Oza-1 and Oza-4 wells are trucked a short distance within the field to the transfer pumping station at the Oza Oil Field for injection into the TNP.

“The initial cargo of 15,000 barrels of crude oil for export to Shell has been loaded onto a vessel with a bill of lading dated February 7, 2024, and the sales proceeds are anticipated by the final week of March. Decklar and Millenium are preparing for another crude oil export nomination notice from Shell before the end of March 2024 for the export of an additional 15,000 barrels of crude oil currently present in the Bonny Export Terminal tanks.”

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