Canadian operator Decklar Resources reports that it has trucked a total of 48,500barrels of crude to two modular refineries in Edo State, Nigeria.
The company has contracts to deliver over 300,000 barrels of oil to these two refineries over the next 12 months.
Decklar operates the Oza field on behalf of itself and Millennium Oil & Gas, the holder of the licence to the field, located in Oil Mining Lease (OML) 11 in Rivers State.
As the two partners were unable to evacuate their output through the Trans Niger Pipeline (TNP) to the Bonny Terminal for export, they decided to truck the commodity to local refineries.
Decklar’s latest operational update notes that “trucking of crude oil from the Oza Oil Field to the Edo Refinery & Petrochemical Company (ERPC) has reached a cumulative volume of over 41,000 barrels”. ERPC is a 6,000 barrels per day modular refinery located in Ikpoba-Okha Local Government Area, Edo State.
The update also says that “over 7,500 barrels of crude have been delivered to Duport Midstream Company Limited (DMCL)”, located in Otien Edo State.
In effect, these deliveries have upended the narrative that refineries that are not built by oil producing companies themselves will suffer undue delays getting access to feedstock.
Prior to the supply of Oza crude to Edo Refinery and Duport, the two functional modular refineries in the country were the 11,000BPD ND Refinery at Ogbele, owned by Niger Delta E&P and the 5,000BPD Waltersmith Refinery &Petrochemical at Ibigwe, owned by the Waltersmith Group. Their supplies are assured by the crude oi production from their Ogbele and Ibigwe fields respectively.
Decklar says that the 41,000Barrels it trucked to Edo Refinery includes “10,000 barrels delivered in 2022 under the initial sale and purchase agreement and over 31,000 barrels delivered so far in 2023”. With that, “the deliveries under the 30,000 barrels contract have now been completed and invoiced, and deliveries will continue under the new 200,000 barrels contract”.
The company commenced delivery of crude oil commenced from the Oza Oil Field to DMCL in March and “under the sale and purchase agreement with DMCL, Decklar and Millenium initially delivered 5,000 barrels to the Duport refinery in March and early April, followed by an additional 2,500 barrels in the last half of April”.
Deliveries of an estimated 5,000 barrels per month will continue going forward, Decklar explains “and DMCL has agreed to purchase up to 100,000 barrels over the next 12 months”.
