San Leon Energy PLC's (AIM:SLE, AQSE:SLE, OTC:SLGYF) highligted a statement from 11% owned Deklar Petroleum on progress at the Oza Oil Field in Nigeria toward establishing larger and more stable volumes of crude oil transport.
The statement said a 7,800 barrel shipment of crude previously delivered to the Umugini pipeline handling facilities has now been delivered to the Forcados crude oil export terminal and is now ready for export – subject to the repair of an offshore loading system.
In the meantime a further 30,000 barrels of crude has been produced at Oza, Decklar noted, and that product is in storage at the field. Decklar added that It is expected that these barrels will be the initial barrels transported to its new export facilities.
Once the crude in storage has been dispatched it is expected that the Oza field will resume production.
At the same time, Decklar and its partner have struck a deal with a domestic Nigerian refinery, with an initial sale of 10,000 barrels, talks are ongoing over a further 30,000 barrels, and a possible monthly minimum supply is being discussed.
Agreements have also been executed to enable the transport of crude via truck to a tank farm located in Akwete, with the initial goal being a 1,100 bopd haulage operation. Once the volume at Akwete reaches 15,000 barrels the barging of crude to an offshore floating storage and offloading unit will begin.
“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,” Decklar said.
“While the trucking and barging of crude oil involves more complex logistics, it is expected to be more reliable and cost effective than trucking and pipelines.”
Decklar added: “All efforts are being made to expedite and complete the necessary arrangements and obtain the required approvals."