“NDEP has always produced on-spec fuel!” __Falade

Yes, you can pardonably mistake him from his identical twin brother who is also in the same field of play. The Managing Director of Niger Delta Exploration and Production (NDEP), Engr Gbite Falade, is a familiar face whose image looms from the international oil companies, the service companies and now the independent operating companies. He has traversed the full industry loop. He is an accomplished petroleum industry professional; yet he is kind, humble and respectful. In this chat with SOPURUCHI ONWUKA, Engr Falade declares that NDEP is well prepared for the challenge of domestic fuel supply with its expansion plans and plant reconfiguration to churn out broader fuel options to fire domestic, commercial and industrial consumption in the country. Enjoy the excerpts.

With the deregulation of the downstream sector of the petroleum industry, midstream sector appear to muster enhanced commerciality, especially in production of transportation fuels. As pioneers in modular refi

Our journey started for us some 12 years ago. Niger Delta Refinery, a subsidiary of Niger Delta Exploration and Production (NDEP) has been in the production of refined products. We started production with 100 per day topping plant where we produced automotive gas oil (AGO).

We have since expanded it to 11,000 barrels per day. So, we have added two trains of 5000 barrels per day producing not only AGO this time. In addition to AGO we now produce naphtha, MDO, DPK and HFO.

We produce to very stringent standards of quality. All our products are quality tested. We run frequent sampling during production, as often as every 30 minutes. We have a full kitted laboratory where we run the basic test to ensure that each of the products conforms to specification pertaining to national quality standards. So there are SON standards and other quality standards that we must adhere to.

Then we look at various parameters and ensure that they are up to spec. These test results are reported son that DPR, now NMDPRA, take stock of these. Our offtakers are also issued quality assurance certificates where they see the test results. And in some instances we have seen offtakers that have requested for much more detailed and expansive third party tests just to confirm the quality. And I am happy to say that we have always produced on-spec!

We have a process where off-spec products, which are rare, are not flown into the storage tanks but are disposed of in a very environmentally save process.

Now as the nation and the market get ready for pms (petrol) production, we are gonna adapt and adopt exactly the same testing procedure; continuous testing, batch by batch that allows us ensure that we analyze the gains and expected values of then various parameters were in line. And that is the only way.

So, my view is that the regulators need to keep a close watch on all the private refineries that would be producing to make sure that they maintain the minimum testing capacity, and that the right quality certificates are incepted and the procedure of frequent testing is also carried out to ensure that what is then sold to the market get consumed by the various applications whether it is vehicles or generators are protected. There must be regulation that would ensure that possibility of substandard or inferior products do not materialise at all.

New generation vehicle combustion engines are configured for the Euro-4 fuel quality standard. How are you going to meet that quality considering that most of the vehicles in the country are mainly older models?

We will because there is a quality specification. So, what has to be done is to have the laboratory equipped to meet the minimum set of test equipments to ensure that each one of what you are producing conforms to regulatory standards.  

Where to actually start is the design of the plant itself to conform to producing the expected quality. But even when you do produce, you then follow with continuous testing. So, the design will be signed off and will be certified as being fit-for-purpose for producing to the grade of the pms or what other product that is intended to produce.

But then, as you then produce in reality, you make sure that you also test to ensure that what comes out is what is purposed. It is a process arrangement, and at time we need to make process adjustments in order to get the right spec. So, you test to make sure that what comes out of your process equipment conforms to the specification that you want.

These specifications are not sectional or country specific. They are global specifications. So, part of what happens is that before allowing you to operate and produce for the market the regulator actually comes to verify that what you are producing in product specification aligns with global standards of those products.

So, it is not something that you can just wing your way around because of the many gated processes for approvals that must come from the regulators.

I was very happy when you mentioned naphtha, which means you are very close to where we need you. So, now you are here are you building capacity for interventions at times of quality crises as we regularly suffer in the market?

We are not set up for that purpose!

We are set up such that our own production conforms to product specification. We are not set up to onboard an off-spec product and recycle it through our own plant processes. So, that is not what we are set up to do.

How do consumers with different quality specifications boost or enhance the quality of generic fuel products in the market through additives, especially now that the market is deregulated? Is it possible that your refinery explores the local market for quality boosting additives?

As long as the market is deregulated, the incentive for entrepreneurs to invest in plant processes to produce those sorts of products exists. What is most important is quality assurance and quality control. As long as that is in place and your plant processes certified, there are different certification and gated processes by the regulators.

There is a license to construct; there is approval to introduce hydrocarbon, and many of that. The work is to ensure that what comes out of your pant conforms to product specification and it is not gonna be harmful to us.

So it is left for each entrepreneur to determine in his mind what kind of products he would pursue: whether it is refined products or these kinds of additives you talked about that he wants to invest in.   

Please can I run now? Someone has been standing!

Yes sir.