Crude Supply To Edo Refinery Suffers Set Back Over Regulatory Delay

Trucking and sale of crude oil to ERPC’s Edo refinery, is experiencing delays as a result of bottlenecks associated with getting regulatory approval.

Decklar Resources and its co-venturer Millennium which provided updates regarding crude oil delivery operations at the Oza Oil Field in Nigeria said, it has experienced some delays obtaining permits to truck crude to the ERPC and DMCL refineries.

The company, however, anticipates that, with new systems recently implemented by the government regulatory agencies future permits will be obtained and issued in a more timely and efficient manner.

It further expressed confidence in crude transportation as the Trans-Niger Pipeline (TNP), which flows into the Shell Petroleum Development Company of Nigeria (SPDC), operated Bonny export terminal, was reopened in April 2023 and remains operational.

However, it hoped that the connector lines including the pipeline serving the Oza Oil Field, would become operational in the near future. 

Based upon public announcements, the main line of the TNP has been operating since April 2023, and recorded minimal losses due to theft and bunkering through May 2023, the company affirmed.

It said, updates provided by SPDC have indicated that the main line has continued operations and it is anticipated that feeder pipelines will soon be operational. 

The TNP had been shut down for over one year due to vandalism and high line losses, and efforts and support from the Nigerian government are credited to a great degree for the resumption of operations.

Decklar is currently re-certifying fiscal metering equipment and has applied for all necessary permits to allow for access and production into the TNP.

It noted further that trucking of crude oil from the Oza Oil Field to the ERPC facility in Edo State, Nigeria has reached a cumulative volume of over 55,000 barrels bbls, with 10,000 bbls delivered in 2022 under the initial sale and purchase agreement and over 45,000 bbls delivered so far in 2023. 

Deliveries are continuing under the 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.

It added that delivery of crude oil has continued from the Oza Oil Field to DMCL and just under 13,000 bbls have been delivered to date while DMCL has agreed to purchase up to 100,000 bbls over the next 12 months. 

The company also reported that Mr. William Foose has resigned from Decklar’s board effective immediately. 

The company thanks Mr. Foose for his valuable input and service.

The CEO of Decklar Resources, Sanmi Famuyide said: “We are very pleased that the TNP pipeline that ties into the Bonny export terminal is back in operation. Once Decklar commences production and exports through the TNP and Bonny terminal, we anticipate being in a position to maintain continuous production and export activities through the TNP, which is a more cost effective and efficient evacuation system for the Oza crude oil production compared to the alternative of trucking and selling to local refineries. 

“I would also like to personally thank Mr. Foose for his valuable contribution as a Board member and wish him the very best in his future endeavours.”