Niger Delta Exploration & Production (NDEP) Plc has said that the expected Premium Motor Spirit (PMS) component and add-on to Train 3 of Ogbele 5,000 bbl/d of crude oil per day would be completed by August this year.
Its chairman, Ladi Jadesimi, said that for the second time in eight years, NDPR had received a Licence to Operate (LTO) its Ogbele Refinery. The new licence was issued by the Department of Petroleum Resources (DPR) for the processing of a further 5,000 bbl/d of crude oil per day bringing effective crude oil refining capacity to 6000 bbl/d.
This specific New Licence is for Train 2 of the Refinery Expansion Project. NDPR received its first Licence to Operate (LTO) in 2012, to process 1,000 bbl/d of crude oil.
The commissioning of the full-fledged refinery is expected to hold imminently with all Trains 1, 2 and 3 operational but not before the refinery reaches full capacity.
He said that total AGO and other refined petroleum products sold which commenced late in 2020 was 39,258,067 litres, stressing that at the end of January 2021, NDPR secured approval from the DPR to introduce hydrocarbon into Train 3 of the Ogbele Refinery.
Jadesimi noted that the dip in global oil and gas prices in addition to OPEC imposed reduced production quota restrictions severely impacted the revenue of the company, as did timely sales through crude oil lifting challenges.
Despite these, he noted, the company remained healthy, with a modest profit after tax of N1.657B for the company and N16.796 B for the Group.
Jadesimi, in his statement, said though the dividend of N7.00 was significantly lower than its record N17 per share for the preceding year, it was a prudent approach based on the effects of the COVID-19 pandemic, and reflected NDEP’s solid fundamentals and commitment to its growth strategy and cash preservation.
He said that despite the effect of the pandemic on business operations in 2020, NDEP “demonstrated its resilience by meeting all its obligations, attaining new milestones and ended the year in profit albeit modestly with staff strength intact.”
“We rose to the challenges posed by COVID-19 and the prolonged lockdown” he said, adding; “The Board and Management carefully monitored industry developments and took steps to reposition NDEP and its subsidiaries while sustaining efficiency and ensuring company survival.” With a Profit After Tax of N1.6 billion for the company and N16.8 billion for the Group, he added that NDEP entered 2021 “on a solid financial foundation.”
He announced the appointments of Mr. ‘Gbite Falade and Mr. Adegbola Adesina as the Group Managing Director/Chief Executive and Chief Financial Officer of the Company, respectively and thanked the pioneer Managing Director/CEO, Dr. ‘Layi Fatona, for coming out of retirement to hold fort until Mr. Falade’s appointment. Both appointments were ratified by the shareholders at the AGM.