Seplat Petroleum to supply Waltersmith refinery with crude
Published by Nicholas Woodroof,
Editor
Oilfield Technology,
The CPA is for the supply of between 2000 and 4000 bpd from existing working-interest production from the Ohaji South Field within OML53, for Waltersmith's new 5000 bpd modular refinery at Ibigwe Field, in Imo State.
Previously, Seplat's share of Ohaji South crude was primarily evacuated to the export Terminal via a third-party Crude Handling Agreement with Waltersmith. This new agreement benefits Seplat by selling its crude oil directly to Waltersmith for refining, thereby eliminating crude losses and downtime experienced along the evacuation and export route. The transaction would also boost the capacity of Waltersmith in providing its products particularly to the immediate region of our operations thereby supporting Seplat's commitment to national energy security.
Seplat is maintaining its guidance of 48 000 - 52 000 boe/d for the 2020 financial year.
Roger Brown, Chief Executive of Seplat, said: "We are delighted to sign this Crude Purchase Agreement with Waltersmith as it ensures that Nigerian crude will be refined locally by a Nigerian refiner. The agreement will eliminate losses we previously experienced on the export pipeline, meaning more revenue will be booked by Seplat for the same amount of oil produced from the field. Waltersmith's refinery will also benefit the Nigerian economy by creating local jobs to refine our oil."
Read the latest issue of Oilfield Technology in full for free: Oilfield Technology's November/December 2020 issue
The November/December issue of Oilfield Technology begins by reviewing the state of the North Sea before moving on to cover a range of topics, including Drilling Technologies, Deepwater Operations, Flow Control.
Contributors come from Varel Energy Solutions, Gyrodata, Clariant Oil Services, Drillmec and many more.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/22122020/seplat-petroleum-to-supply-waltersmith-refinery-with-crude/
You might also like
Halliburton launches Intelli portfolio of wireline conveyed diagnostic well intervention services
Halliburton Company has announced it has introduced the Intelli suite of diagnostic well intervention wireline logging services.