Edo Refinery Laments Lack of Crude Supply by NNPC, Local Companies

• AIPCC Energy Limited expressed concerns about inadequate crude oil supply, hindering the Edo Refinery’s ability to operate at full capacity
• Despite President Tinubu’s directives, the Edo Refinery has not received crude allocations, impacting its production and operational efficiency

The management of AIPCC Energy Limited, operators of the Edo Refinery and Petrochemicals Company Limited (ERPCL), has expressed concerns over the lack of crude oil supply despite being a fully operational refinery with a capacity of 1,000 barrels per day.

Speaking to journalists in Benin City on Sunday, the refinery’s management highlighted the significant challenges faced due to the persistent crude supply shortage. Despite President Bola Tinubu’s directives for local refineries to be supplied with crude oil, the Edo refinery has yet to receive any allocation from the relevant authorities.

Segun Okeni, a representative of ERPCL, noted that the refinery cannot operate at full capacity due to supply constraints. He mentioned that the company has existing supply agreements with Seplat Energy and ND Western since 2022, but bureaucratic obstacles have prevented the refinery from accessing the necessary crude feedstock.

Okeni recounted the company’s efforts to secure crude supply: “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 purchase crude oil from NNPCL. We immediately followed up with a letter seeking crude supply, dated 22 July 2022.”

He further explained that the refinery still lacks the needed crude oil after several inspections, meetings, and correspondences with the Nigerian National Petroleum Company Limited (NNPCL) and other relevant bodies.

The ERPCL has called on the NNPCL and other crude oil suppliers to establish the necessary loading infrastructure to facilitate truck loading, which would help alleviate the supply issues.

This situation mirrors challenges other local refineries face, as evidenced by the Dangote Petroleum Refinery’s recent statement about not receiving the 29 million barrels of crude allocated to it by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).