The management of AIPCC Energy Limited, operators of the Edo Refinery and Petrochemicals Company Limited (ERPCL), has raised the alarm over the persistent lack of crude despite being a fully functional 1,000 barrels per day stream crude oil refinery.
It said that despite the disclosure by the Dangote Refinery 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 receive any from the relevant authorities.
Speaking to journalists in Benin City at the weekend, the management of Edo Refinery, situated in Ologbo, Ikpoba-Okha Local Government Area (LGA) of Edo State, said it is facing significant challenges due to the persistent lack of crude oil supply.
A representative of the company, Segun Okeni, stated that the refinery, which requires 1,000 barrels per day stream crude, can barely function at full installed capacity.
Okeni said 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, ERPCL’s letter addressed to Mele Kyari, Group Chief Executive Officer of NNPCL, after having a series of meetings and constant communication with him, was not attended to.
He said, “On 18th August 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 NNPCL, and we immediately wrote seeking crude supply,” the letter was dated 22nd July 2024.
“In July 2022, representatives of NNPC (from HQ Abuja and NPDC Benin) 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 the NNPCL Head of Terms, after which we sent a follow-up letter identifying the oil fields from which we could offtake crude oil.
