Edo refinery decries NNPCL’s failure to supply crude
12 August 2024 |
4:46 am
The management of AIPCC Energy Limited, operators of the Edo Refinery and Petrochemicals Company Limited (ERPCL), has raised the alarm on the persistent lack of crude oil despite being a fully functional 1,000 barrels per day stream crude oil refinery. It said that despite the disclosure by the Dangote Refinery on the refusal of…
The management of AIPCC Energy Limited, operators of the Edo Refinery and Petrochemicals Company Limited (ERPCL), has raised the alarm on the persistent lack of crude oil despite being a fully functional 1,000 barrels per day stream crude oil refinery.
It said that despite the disclosure by the Dangote Refinery on the refusal of the Nigerian National Petroleum Company Limited (NNPCL) and the directive by President Bola Tinubu that the establishment should supply crude oil to Dangote Refinery and other modular refineries in the country in naira denomination, the Edo Refinery is yet to get any from the relevant authorities.
Speaking to journalists in Benin City, at the weekend, the management of Edo Refinery, situated at Ologbo, in Ikpoba-Okha local council of Edo State, said that it is facing significant challenges due to a persistent lack of crude oil supply.
A representative of the company, Segun Okeni, said that the refinery can barely function at full installed capacity. Okeni noted that although the company has existing crude oil supply agreements with Seplat and ND Western since 2022, bureaucratic bottlenecks have prevented the refinery from accessing the much-needed resource. He alleged that in 2021, the Edo Refinery’s letter addressed the Group Chief Executive Officer (GCEO) of NNPCL, Mele Kyari, after a series of meetings and constant communication with him, was not attended to.
Okeni said: “On August 18, 2021, our team led by our chairman, met with the NNPCL CEO and its top management team to discuss our intention to buy crude oil from the company, and we immediately wrote seeking supply of the product. The letter was dated July 22, 2024.
“In July 2022, the representatives of NNPCL visited our facility for site inspection and to confirm the mechanical completion of the Edo Refinery. In September 2022, we were invited for a commercial negotiation meeting with NNPCL’s Head of Terms, after which we sent a follow-up letter identifying the oil fields from which we can off-take crude oil.
“In March 2022, we also wrote to the Ministry of Petroleum Resources, informing it of our refinery status, future projects, and challenges of lack of crude oil supply to our refinery. We had also written and had a meeting with the NNPC Exploration and Production Limited (NEPL) between November 2022 and March 2023, indicating our severe need for crude oil supply from oil fields where NEPL has equity stakes.”
Okeni, however, noted that despite these meetings, correspondences and communications with NNPCL over the past three years on the issues of crude oil supply, nothing was done.
He also identified other key issues encountered by the refinery as the inability of NNPCL to assign any of the preferred fields to allocate crude to the company since it started having engagement with the management on August 18, 2021, pointing out that even with options given to allocate crude to the refinery from ND Western, First Hydrocarbon, and Seplat, nothing happened till date. Okeni, therefore, asked Kyari to intervene in the matter.
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