…as Duport Refinery places order for 100,000 barrels of crude from Oza oil field
Duport Midstream Company Limited (DMCL), which operates the 2500 barrels per day (bpd) modular refinery in Egbokor, Orhionmwon Local Government Area of Edo State, has placed an order for 100,000 barrels of crude (bbls) from Oza oil OML 11, operated by Decklar Resources Inc. (“Decklar”) and its co-venturer Millenium Oil & Gas Company Limited (“Millenium”).
In a statement, the Chief Executive Officer of Decklar Resources Inc, Sanmi Famuyide, said DMCL has agreed to purchase up to 100,000 bbls over the next 12 months.
This adds to the initial 200,000bbls from Edo Refinery and Petrochemical Company (ERPC), which operates a 6000bpd facility in Ologbo, Ikpoba Okha Local Government Area, a development that positions Edo as Nigeria’s leading crude refining hub. In total, orders from the two refineries in Edo from the Oza oil field stand at 300,000 bbls.
The two modular refineries were established in Edo State since Governor Godwin Obaseki opened up the state to investors through incentives that include easy access to land, dislodgement of non-state actors frustrating private investors as well as the setting up of a one-stop-shop for investment promotion.
According to Famuyide, “In late March, delivery of crude oil commenced from the Oza Oil Field to DMCL and over 7,500 bbls have been delivered to date. Under the sale and purchase agreement with DMCL, Decklar and Millenium initially delivered 5,000 bbls to the Duport refinery in March and early April, followed by an additional 2,500 bbls in the last half of April.
“Deliveries of an estimated 5,000 bbls per month will continue going forward, and DMCL has agreed to purchase up to 100,000 bbls over the next 12 months. The agreement with DMCL has added a new customer for the sale of crude oil from the Oza Oil Field and gives Decklar and Millenium an expanded base to deliver and sell additional crude oil volume.”
On the company’s dealings with ERPC, Famuyide noted: “Trucking of crude oil from the Oza Oil Field to the ERPC facility in Edo State, Nigeria has reached a cumulative volume of over 41,000 bbls, with 10,000 bbls delivered in 2022 under the initial sale and purchase agreement and over 31,000 bbls delivered so far in 2023.
“Deliveries under the 30,000 bbls contract have now been completed and invoiced, and deliveries will continue under the new 200,000 bbls contract. The terms of the 200,000 bbls agreement include an invoicing and payment cycle that is triggered as each 5,000 bbls batch is delivered and offloaded at the Edo refinery.”
