SEPLAT signs Crude Purchase Agreement with Waltersmith Petroman

Seplat Petroleum Development Co. has signed a Crude Purchase Agreement (CPA) with Waltersmith  for the supply of between 2000 and 4000 bpd from existing working-interest production from the Ohaji South Field within OML53, for Waltersmith’s new 5000 bpd modular refinery at Ibigwe Field, in Imo State.

Previously, a third-party Crude Handling Agreement with Waltersmith had seen a share of Ohaji South crude was primarily evacuated to the export Terminal. This agreement will  allow Seplat to sell its crude oil directly to Waltersmith for refining eliminating crude losses and downtimealong the evacuation and export route.

To Waltersmith this agreement will boost its capacity in providing its products particularly to the immediate region of its operations tin line with Seplat’s commitment to national energy security.

“We are delighted to sign this crude purchase agreement with Waltersmith as it ensures that Nigerian crude will be refined locally by a Nigerian refinery. The agreement will eliminate losses we previously experienced on the export pipeline, meaning more revenue will be booked by Seplat for the same amount of oil produced from the field. Waltersmith’s refinery will also benefit the Nigerian economy by creating local jobs to refine our oil,” said Seplat’s CEO Roger Brown.

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