In the short term, the company negotiated that all processing agreements with third parties should meet the challenge of using AR to power the refinery`s boilers. “If a company has sold gas sold, it`s x plus y and costs and staff, etc., but if it only sells gas, it only needs one or two employees,” Pelle said. “But when you think about job opportunities, the toll is not that good.” “If you`re building your own refinery, you need 500 to 1,000 workers to run the refinery with the right capacity, and you need more engineers and you also need to train people, but when toll agreements are made, you don`t need those skills,” Pelle said. “With toll contracts, you need a small group of people, especially buyers and marketers, and it`s cheaper because they often work for the account.” As part of a toll agreement, the toll company provides fuel to a power plant operator and buys the electricity as a product and then markets it. Feldman said the agreements had begun a significant cog in risk allocation in the sector and were based on a different cost-effectiveness than the original independent electricity projects. He said that although the current regime covers the CDU`s processing of crude oil, the RFCC, which is currently under nitrogen pressure, would soon be activated after the end of negotiations between TOR and some potential partners. The $12 billion complex is being built in Tuban, eastern Indonesia. It is designed to process 300,000 barrels per day (bpd) of crude oil. An agreement whereby a party holds (and carries) the entries and exits of a trial, as well as the rights to part of the process`s capacity (the super). Another party undertakes to manage the process or installation and collects a toll per converted entry unit or unit of capacity on which fees are granted (the toll). As part of a toll agreement for LNG, a company sends a volume of input gas to a liquefaction plant, with the gas being liquefied against a predetermined toll.
Mr. Osei explained that third parties who enter into toll agreements with TOR trust TOR`s new philosophy of operational efficiency and transparency and are therefore motivated to do business with TOR. “Another drawback [with toll contracts] could eventually be security of supply,” Pelle said. “But on the other hand, I think security of supply would be easy to achieve given the long-term contracts and the continued tide of oil supplies.” Mr. Osei, who answered questions from energy reporters on the sidelines of the Accra conference of the African Refiners Association in Accra, mentioned that TOR was negotiating, in addition to the current toll agreement with Woodfields Energy, the signing of similar toll agreements with other international distributors such as Gemcorp, BP and other distributors.