The Edo Modular Refinery has finally received its first crude feedstock for production, two years after it was initially scheduled to commence operations.
Thisday reported that the company got its first supply of 10,000 barrels of crude feedstock from Decklar Resources Inc. and its co-venturer, Millennium Oil & Gas Company Limited which operates the Oza Oil Field.
More details: According to the report, the 6,000 barrels per day (bpd) modular refinery has started production in its plant located at Ologbo community in the Ikpoba Okha Local Government Area of Edo state. The plant is operated by the Edo Refinery and Petrochemical Company (ERPC) Limited
The modular refinery can produce 50% of diesel at 500,000 litres, 25% of Naphtha at 300,000 litres and 20% of Low Pour Fuel Oil (LPFO) at 200,000 litres.
The backstory: In June 2021, the Governor of Edo state, Godwin Obaseki visited the Ologbo plant and received first-hand information from the management of ERPC that the facility was ready to refine crude oil.
According to Edo-based Independent Television (ITV), Governor Obaseki inspected the processing lines, laboratories, tank farms, and other parts of the refinery and certified that the facility was ready for production. He said:
“The plant is ready to receive products and it’s ready to receive crude oil. They have done the pre-commissioning with the department of petroleum resources (DPR) which has certified the refinery as okay.”
At the time, the Managing Director of the Edo Modular Refinery, Tim Tian also said the facility was ready for production.
Current plans: According to the report cited, ERPC has announced its intention to cap its production capacity at 21,000 barrels per day (bpd) at the Ologbo modular refinery
The company also said that the delivery of 10,000 barrels of crude from Decklar and Millenium to Edo Refinery was conducted under the terms of the sales agreement of which an invoice has been issued and payment received.
The initial agreement between the companies was for deliveries of up to 10,000 barrels (bbls). However, a new agreement is being negotiated for the delivery of an additional 30,000 bbls.
Why this is important: The Federal Government has shown support for the development of modular refineries across Nigeria, to reduce the importation of refined petroleum products.
Although the FG is refurbishing the Port-Harcourt, Kaduna and Warri refineries, the FG has said it is important to also develop modular refineries. Earlier in January 2023, the FG announced that it had acquired shares in the 12,000 bpd Azikel Modular Refinery in Bayelsa state; the 5,000 bpd Waltersmith Modular Refinery in Imo state; and the 2,500 bpd Duport Modular Refinery in Edo state.