A contract for 200,000 barrels of crude from the Oza Oil Field, which is run by Decklar Resources Inc. and Millenium Oil and Gas Company, has been placed by Edo Refinery and Petrochemicals Company Limited.
It stated that this was consistent with the efforts of Edo State Governor Godwin Obaseki to make the state a significant investment and industrial refuge for the nation.
In a memorandum of understanding with a Chinese consortium led by Peiyang Chemical and Equipment Company of China and its Nigerian partners, Africa Infrastructure Partners Limited, Obaseki’s government invested N700 million in the form of redeemable preference shares (investment) in the Edo Refinery.
The 6,000-barrel-per-day refinery had been completed and placed into operation, with diesel, naphtha, and low pour fuel oil as its primary products.
According to a statement released by Decklar Resources Inc. and its joint venture partner, Millenium Oil & Gas Company Limited, total deliveries of crude oil under the 30,000 bbls crude sale agreement have now surpassed 27,000 barrels. Trucking of crude oil from the Oza Oil Field to the Edo Refinery and Petrochemicals Company Limited has continued steadily.
It also said that it had started selling goods to Duport Midstream Company Limited, the second modular refinery that the Obaseki-led administration had attracted to Edo State.
According to the statement, “Trucking of crude oil also commenced in late March to the Duport refinery in Edo State, with over 3,700 bbls delivered to date.
“Under the sale and purchase agreement with Duport Midstream Company Limited, Decklar and Millenium will initially deliver 5,000 bbls to the Duport refinery, followed by a minimum of 2,500 bbls per month thereafter.”
Noting that they had increased supply to Edo Refinery, the companies said, “The terms of the 30,000 bbls agreement include an invoicing and payment cycle that is triggered as each 5,000 bbls batch is delivered and offloaded at the refinery.
“Invoices for 25,000 bbls have been issued, and total deliveries under this contract are nearing the final 5,000 bbls batch. This cycle will continue after completion of deliveries under the 30,000 bbls contract, as Decklar and Millenium recently signed a sale and purchase agreement with ERPC for delivery of an additional of 200,000 bbls to ERPC’s facility.”
Chief Executive Officer of Decklar Resources, Sanmi Famuyide, said, “Crude oil deliveries to ERPC and to our new customer, DMCL, have been continuing steadily in a routine manner. This has provided consistent cash flow and enabled Decklar and Millenium to deliver and sell substantial volumes of crude oil to both customers. We have delivered a total of over 37,000 bbls to ERPC’s Edo refinery and have delivered over 3,700 bbls to DMCL’s refinery under their initial 5,000 bbls contract.”
