San Leon , the independent oil and gas production, development and exploration company focused on Nigeria, has a 11% shareholding in Decklar Petroleum Limited (“DPL”), the local subsidiary of Decklar operating in Nigeria, and has also made a US$5.5 million loan to DPL, via 10% per annum unsecured subordinated loan notes. San Leon has noted the announcement made on 15 March 2023 by Decklar Resources in Canada.
As confirmed in its recent announcement on 1 March 2023, San Leon continues to explore a potential sale of its non-core investments in DPL although the completion remains subject to the purchaser finalising its own funding arrangements. San Leon is confirmation of the Decklar Resources and its co-venturer Millenium announcement of execution of an addendum to the recent crude oil sale and purchase agreement and provision of updates regarding crude oil delivery operations at the Oza Oil Field in Nigeria.
Crude Oil Sales and Purchase Agreement Increased to 200,000 bbls
Decklar and its co-venturer Millenium have signed an addendum to the recently executed sale and purchase agreement with ERPC to deliver an additional 150,000 bbls to the Edo Refinery in Edo State, Nigeria. The addendum increases the total volume to be delivered under the sale and purchase agreement to a total of 200,000 bbls. This agreement follows the 30,000 bbls agreement that Decklar and Millenium are currently delivering on and extends the arrangement to continue to deliver and sell production from the Oza Oil Field after the 30,000 bbls contract has been fulfilled.
Sale of Crude Oil in Storage with UPIL
Decklar and Millenium are making arrangements to obtain necessary permits to sell and export approximately 8,000 bbls previously delivered to Umugini Pipeline Infrastructure Limited (UPIL) and held in storage at the Forcados export terminal tank farm.”
Continued Trucking and Sale of Crude Oil to Edo Refinery
San Leon trucking of oil from the Oza Oil Field has continued to the ERPC facility in Edo State, Nigeria, and delivery of a total of over 30,000 bbls has been completed to date, with invoices issued so far for the 20,000 bbls delivered under the 30,000 bbls sales agreement. Payments for delivery of crude oil continue to be received per the terms of the 30,000 bbls sales agreement as each 5,000 bbl batch is invoiced.
Additional deliveries are continuing on an ongoing basis, and efforts are being made to obtain additional permits to increase the truck fleet to serve the sales demands of the ERPC contract and the recently executed agreement with Duport Midstream Company Limited.
The Edo Refinery and Petrochemicals Company Limited (EPRC) has ordered additional supply of 150,000 barrels of crude oil from Decklar and its co-venturer Millenium as was captured in recently signed addendum of execution of sale and purchase agreement. This was confirmed by the Edo state government via its special assistant on media projects my Crusoe Osagie.
“Decklar and Millenium are at an advanced stage of executing a new 150,000 bbls crude oil sale and purchase agreement with ERPC, which is expected to include terms for invoicing and payment after the delivery of each cargo of 10,000 bbls of crude oil,” the Edo government quoted Sanmi Famuyide, chief executive officer (CEO) of Decklar Resources Inc., as saying.
“We are very pleased that payments for the sale of crude oil from the Oza field continue to be received. Deliveries to ERPC in Edo state are ongoing on a consistent basis, and the anticipated doubling of the contracted truck fleet is expected to enable the company and our co-venturer, Millenium, to increase the volume and consistency of deliveries of oil to market,” He said
“The additional trucking capacity is also expected to create opportunities for additional delivery of crude oil to other potential customers in the near term.” He added
The Edo refinery is 6,000 barrels of oil per day modular refinery constructed by two Chinese firms: AIPCC Energy Limited and Peiyang Chemical Equipment Company Limited and located in the Ikpoba-Okha local government area of the state.
The refinery is consisted of two trains of 1,000bpd and 5,000 bpd capacities respectively and it is expected to produce 50 percent of diesel (500,000 litres), 25 percent of naphtha (300,000 litres) and 20 percent of fuel oil (200,000 litres) from its feedstock. The modular refinery commenced production in January 2023 with its first supply of 10,000 barrels of crude feedstock.
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