By Moses Patience Chat
Edo Refinery and Petrochemical Company (ERPC) Limited, operators of the 6000bpd Modular Refinery in Ologbo, Ikpoba Okha Local Government Area, has revealed that the company is about to commence the export of naphtha, one product from its production plant that will help it generate $125 million per annum.
The Chairman of ERPC, Dr. Mike Osime, who revealed this in a statement on Wednesday said that the refinery is at a full capacity and is expected to meet 18 per cent of local demand for diesel and earn foreign exchange from its operations, which would boost Edo’s economy.
Naphtha is a flammable oil, which contains various hydrocarbons that are obtainable from the dry distillation of organic substances, such as coal, shale or petroleum. It is used for making laundry soap, cleaning fluids and fuel for camp stoves.
The Edo refinery has doubled down on production since it started processing crude oil sourced from the Oza Oil Field. It also recently placed an order for 150,000 barrels of crude oil from operators of the marginal field, Decklar Resources Incorporated and Millenium Oil and Gas Company Limited.
There have been media reports that the Company secured about N700 million from Godwin Obaseki, the Governor of Edo State to commence the project. It was estimated by the Company that the facility would “rake in over $125 million from the export of Naphtha per annum.”
Valuechain learnt that the fund gotten from the Edo State Government fast-tracked the kick-off of the project, which helped to boost productivity in the state and increase tax receipts.
The facility, together with its feedstock, can produce 50 per cent of diesel (500,000 litres), 25 percent of naphtha (300,000 litres), and 20 percent of Low Pour Fuel Oil (LPFO) (200,000) litres.
Edo Refinery is the first of two refineries operating in Edo State, with the second being the Duport Refinery, which operates from West Africa’s first energy park in Egbokor, Orhionmwon Local Government Area of the state.