Decklar And Millenium Deliver To Export 7,800bbls, Sign New Pact On Oza Oil Field

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Decklar and its co-venturer, Millenium Oil & Gas Company said they have delivered 7,800 barrels of crude oil (‘bbls’ to the Forcados crude oil export terminal).

Sanmi Famuyide, CEO of Decklar Resources, said the 7,800 barrels of crude oil (‘bbls’) were retrieved fromUmugini Pipeline Infrastructure Limited crude handling facilities to which it was previously delivered.

The 7,800 bbls, according to Decklar are now ready for export pending the completion of certain repairs to the offshore loading system.

In the meantime, an additional 30,000 bbls has been produced from the Oza Oil Field and is currently being stored in tanks at the Oza-1 wellsite.

Once part of this crude is shipped from the Oza Oil Field tanks, the Oza-1 well will be brought back onto production, with the ultimate goal of provision of a stable, ongoing supply of crude oil into new alternative export facilities.

According to them, an agreement has also been reached to transport and sell crude oil from Oza oil field to a company that owns and operates a small crude oil refinery in Edo State, Nigeria.

The agreement provides for an initial sale of 10,000 bbls which the parties plan to later increase to 30,000 bbls. They are also to possibly agree a minimum monthly quantity of barrels of crude from Oza Oil Field for sale to the oil refinery while they await government permits in the next three to four weeks.

The two companies also said that a separate, agreements have been executed to truck crude oil from the Oza Oil Field to a 45,000 barrel tank farm located in Akwete. The short-term goal is to transport approx. 1,100 barrels of oil per day from the Oza oil field to the storage tanks at Akwete. Once the volumes at the Akwete oil tank exceed 15,000 barrels, barges will load and transport the crude to an offshore floating storage and offloading unit (‘FSO’).

The barging to an FSO will provide Decklar and Millenium with the ability to produce and transport larger and more stable volumes of crude oil from the Oza Oil Field and avoid the use of pipelines in areas that continue to have problems with availability, delays and losses.

While the trucking and barging of crude oil involves more complex logistics, it is expected to be more reliable and cost effective than utilizing trucking and pipelines.

This plan is also awaiting government permits in the next four to five weeks to enable it transport to the Akwete oil storage tank

“The new crude export arrangements, including the sale of the Oza crude oil in storage, sale of future production to a local refinery, and trucking crude oil from the Oza Oil Field to the Akwete tank farm for barging to an FSO, will allow Decklar to significantly increase deliveries of oil to markets through improved logistics and alternative export facilities. These new and existing export alternatives will allow Decklar to generate revenue in the near future as we look forward to the commencement of more efficient crude oil transport and exports from the Oza field”.

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