A Precedent for the Nigerian Oil and Gas Industry: NDPR Receives LTO Approval for Mini Diesel Topping Plant at Ogbele

On the 10th of November 2011, the Honourable Minister of Petroleum Resources, Dr. (Mrs.) Diezani Alison-Madueke, on behalf of the Federal Government of Nigeria, signed a License To Operate (LTO) the Ogbele mini Refinery, in favour of Niger Delta Petroleum Resources Ltd (NDPR), the fully owned subsidiary of Niger Delta Exploration & Production Plc (NDEP).

This License, the first of its kind to be granted to an Independent, publicly owned Nigerian Company, gives NDPR full authority to operate its Mini Diesel Refinery (Topping Plant) at the Ogbele Field in old OML 54 (Rivers State).

The LTO will make NDPR’s mini diesel refinery the first of such independently owned and fully operational diesel refinery in Nigeria. The refinery has an initial capacity of 1000 bbls per day, and first commenced production in December 2010, using crude oil feed from NDPR’s existing Ogbele Flowstation. The resultant diesel has since been certified by the Department of Petroleum Resources (DPR), as meeting all the quality controls and specifications.

The Mini Refinery was installed to initially promote self-sufficiency in NDPR’s operations and now the LTO has been granted, NDPR will be able to contribute to Nigeria’s energy production by selling surplus diesel on to independent marketers, for local consumption. The refinery will therefore not only benefit NDPR’s operations, but will also boost local capacity and local content.

‘Today, a precedent has been set for the Nigerian Oil and Gas Industry, said Dr. ‘Layi Fatona, Managing Director, NDEP Plc.

‘This is a ground breaking achievement, not only for NDEP Plc, which has come a long way since its modest vision of being a publicly owned Nigerian Oil and Gas Company, but also for Nigeria.

‘The operation of this mini diesel refinery shows what can be achieved by a local company, using local staff, financing and expertise. Thank you to all of our committed staff and shareholders. Also, we are extremely grateful to the Ministry of Petroleum Resources, for its ongoing partnership and support.

Since NDPR began production in 2005, it has progressed from an asset owner to an asset producer and has now achieved the unique status of being an Integrated, independent Nigerian Oil and Gas operating Company, and presently the first independently owned company to refine crude oil locally here in Nigeria.

The production of diesel also complements NDPR’s gas processing capacity. A Gas Processing Plant, with a designed capacity of 100MM scf/d has been completed, to exploit the proven gas reserves in the Ogbele Field. The tail gas will be transported to the NLNG Train 6 at Bonny Island through a 20km NDPR’s 12”gas pipeline, in fulfillment of the obligations of a pioneering Gas Sales Agreement (GSA), between NDPR and the NNPC/Shell/Total/Agip (NLNG Joint Venture). NDPR is also well poised to contribute to the nation’s domestic gas supply quota while at the same time eliminating gas flaring in its oil production operations.

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About Niger Delta Exploration & Production Plc

Niger Delta Exploration & Production Plc (NDEP) is a publicly owned, integrated Independent Oil and Gas focused Investment Company, with a range of assets. Originally incorporated in 1992, NDEP Plc was established as an investment vehicle for Nigerians to participate in the country’s foremost income generator, the oil and gas sector.

Today, NDEP Plc has over six-hundred shareholders and has evolved into a fully integrated oil and gas investment company. As an Independent Nigerian Company, NDEP has a genuine regard for the environment it operates in, evident in all aspects of its operations and has set up a pioneering Host Community Development Trust, to support five local communities in which it operates, in Rivers State.

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